U.S. existing-home sales experienced their first increase in five months, fueled by lower mortgage rates and a rise in housing supply. The National Association of REALTORS® (NAR) reported a 1.3% month-over-month increase in sales of previously owned homes, reaching a seasonally adjusted annual rate of 3.95 million units. This marked the end of a recent decline and surpassed the expectations of economists.
In the Chattanooga area, new listings rose by 22.9% to 1,483, and pending sales were up by 10.3% to 978. Inventory levels saw a significant jump, increasing by 62.2% to 2,880 units. Home prices continued to rise, with the median sales price climbing 3.0% to $339,900. The average days on the market increased by 6.5% to 33 days. Buyers saw more options available, with the months of inventory rising 61.9% to 3.4 months.
On a national level, housing inventory edged up by 0.8% from the previous month to 1.33 million units, providing a 4.0-month supply at the current sales rate, according to NAR. Despite this inventory increase being nearly 20% higher than last year, demand still outstrips supply, putting upward pressure on prices. The median existing-home price nationwide rose by 4.2% year-over-year to $422,600, marking the 13th consecutive month of annual price increases.