National Overview
U.S. existing-home sales have declined for the third consecutive month, primarily due to higher mortgage rates and rising sales prices. These factors have hindered market activity during what is traditionally one of the busiest times of the year. According to the National Association of REALTORS® (NAR), sales of previously owned homes dipped 0.7% month-over-month and 2.8% year-over-year, resulting in a seasonally adjusted annual rate of 4.11 million units.
Nationally, total housing inventory grew 6.7% month-over-month to 1.28 million units heading into June. This equates to a 3.7 months’ supply at the current sales pace. Despite this increase in supply, home prices have continued to rise. The median existing-home price has climbed to $419,300, marking a 5.8% increase from the same period last year and setting a record high for the month.
Chattanooga Region Insights
In the Chattanooga region, new listings saw a notable increase of 5.6%, reaching a total of 1,322. However, pending sales experienced a slight decline of 1.8%, totaling 906. Inventory levels in the region grew significantly by 24.5% to 2,545 units, providing more options for potential buyers.
Prices in Chattanooga continued their upward trajectory. The median sales price increased by 3.5% to $346,625. The average days on market also rose by 16.7%, now standing at 35 days. Buyers seem to have gained more negotiating power as the months’ supply of inventory increased by 30.4% to 3.0 months.
Key Metrics
- Average Sales Price: $399,340
- Sold Listings: 904
- Average Days on Market: 35
Price Dynamics
Despite the growing inventory, prices are still on the rise. In Chattanooga, the median sales price now stands at $346,625, reflecting a 3.5% increase. Nationally, the median existing-home price has reached $419,300, a 5.8% year-over-year increase.
Supply and Demand
The increase in supply has not yet alleviated the pressure on home prices. Nationally, the total housing inventory grew by 6.7% month-over-month to 1.28 million units, translating to a 3.7 months’ supply. This indicates that the market still favors sellers, with limited inventory keeping prices elevated.
Looking Ahead
With homebuyer demand remaining strong and supply still limited, experts anticipate that home prices will likely remain high in the coming months. The current market dynamics highlight the resilience and adaptability of the real estate market, even in the face of rising mortgage rates and increasing prices.
Stay tuned for more updates as we continue to monitor the evolving real estate landscape. 📊