April brought a mix of significant shifts to the U.S. real estate market, with existing-home sales dropping 4.3% month-over-month to a seasonally adjusted annual rate of 4.19 million, as reported by the National Association of REALTORS® (NAR). This decline comes amid rising interest rates and home prices, which are sidelining some potential buyers. Recent weeks have seen average 30-year mortgage rates surpassing 7%, and the median existing-home sales price climbing to $393,500, marking a 4.8% increase from the previous month, according to NAR data.
In contrast, the Chattanooga region experienced a notable uptick in new listings and pending sales. New listings surged by 25.5% to 1,354, while pending sales rose by 13.0% to 1,067. Inventory levels in the area also saw a significant increase, growing by 22.6% to 2,149 units.
Price trends in Chattanooga mirrored the national landscape, continuing to gain momentum. The median sales price in the region increased by 7.5% to $322,500. Homes are staying on the market slightly longer, with days on market up 2.8% to 37 days. Buyers in the Chattanooga area are benefiting from a more balanced market, as the months supply of inventory rose by 31.6% to 2.5 months.
Warmer temperatures appear to have encouraged more sellers to list their properties, enhancing the choices available to buyers during the spring season. Nationally, total inventory rose by 4.7% month-over-month and 14.4% year-over-year, providing a 3.2 months’ supply at the current sales pace. Despite the increase in supply, demand continues to outstrip available homes, with properties selling swiftly. The average home in the U.S. spent 33 days on the market, down from 38 days the previous month.
As the spring buying season progresses, staying abreast of these evolving trends will be key for anyone navigating the real estate market. The dynamic conditions present opportunities for both buyers and sellers, and understanding these shifts can help in making informed decisions. Expect further updates and insights as we continue to monitor the market in the coming months.