Hamilton Herald Masthead

Editorial


Front Page - Friday, May 26, 2023

Thin inventory puts pressure on market




The housing market is shifting all over the country, and inventory remains tight nationwide.

With 980,000 units available for sale heading into April, that’s a 5.4% increase from one year earlier. However, the number of homes for sale is down compared to the same period in 2019 – before the pandemic.

The lack of existing inventory continues to impact home sales. With only 2.6 months’ supply of homes at last measure, competition for available properties remains strong, especially in certain price categories, with multiple offers occurring on about one-third of properties, according to the National Association of Realtors.

The national housing landscape in April saw existing-home sales decline 2.4% month-over-month as of last measure, according to NAR, reversing February’s sales gain of 14.5%. In addition, fluctuations in mortgage interest rates have caused buyers to pull back, with pending sales dropping 5.2% month-over-month.

Meanwhile, the median existing-home sales price declined for the second month in a row, falling 0.9% nationally from the same time last year – the largest year-over-year decline since January 2012, according to NAR.

Possibly contributing to the lack of housing inventory is the recent rate hike from the Federal Reserve. Last week at our Federal Legislative Meetings, NAR economist Lawrence Yun and National Association of Home Builders economist Robert Dietz agreed that the Fed’s continual interest rate hikes are freezing lending activity, undermining efforts to build homes and relieve inventory.

New listings in the Chattanooga region decreased 26.1% from April 2022 (1,422) to 1,051. Pending Sales were down 10% from April 2022 (1,093) to 984.

Inventory levels grew 16% from April 2022 (1,296 units) to 1,504 units. Prices were fairly stable.

The median sales price decreased 0.3% to $300,000. Days on Market was up 140% from April 2022 (15 days) to 36 days. Buyers felt empowered as months supply of inventory was up 33.3% to 1.6 months.

The market is shifting, but one constant in this changing market is the need to consult a Realtor for your property buying or selling needs.

Whether you’re buying or selling, or moving locally or across the country, Realtors have the knowledge and tools needed to make sure you’re getting the most out of your investment. That’s Who We R.

Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.