At a time of year when homebuying activity is typically strong, soaring costs have caused home sales to decline nationwide for the fifth consecutive month. In addition, existing-home sales have fallen 5.4% month-to-month and 14.2% year-over-year, the National Association of Realtors reports.
But there is a bright spot. Inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, which is equivalent to a three-month supply. And despite the summer slowdown, homes are still selling quickly, with the typical home staying on market for an average of 14 days.
The U.S. housing market has continued to cool, as rising mortgage rates and record-high prices have stifled affordability, weakening demand and pricing out many buyers. The NAR reports the median household income has failed to keep pace with increasing mortgage payments, and the cost of buying a home is about 80% more expensive now than it was just three summers ago.
As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.
Looking locally, new listings in the Chattanooga region decreased 13.3% to 1,393. Pending sales were down 15.1% to 1,062. Inventory levels grew a significant 23.2% to 1,822 units. For perspective, the number of homes for sale in July 2021 was 1,479.
Prices continued to gain traction. The median sales price increased 17.8% over the July 2021 amount ($263,050) to $310,000. Days on market were down 6.3% to 15 days. Buyers felt empowered as months supply of inventory was up 21.4% to 1.7 months.
The housing market continues to shift every day, which is why it’s crucial to utilize the expertise of a Realtor. Whether you’re buying, selling, or moving locally or across the country, Realtors have the knowledge and tools needed to make sure you get the most out of your investment. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is a regional organization with more than 2,500 members servicing 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’s one of approximately 600 MLSs in the country and services more than 2,700 users.