U.S. existing-home sales unexpectedly slipped 1.0% month-over-month and 3.5% year-over-year in September, falling to a seasonally adjusted annual rate of 3.84 million, the lowest level in over a decade, according to the National Association of REALTORS® (NAR). Despite a slight decline in mortgage rates and an increase in available inventory compared to last year, prospective buyers have pulled back in recent months, leading to slower sales activity nationwide. The median price of existing homes rose 3% year-over-year to $404,500, reflecting ongoing upward pressure on home values.
In contrast, the Chattanooga real estate market showed more resilience in September. New listings in the region increased by 12.3%, reaching 1,292, while pending sales saw a significant 15.5% jump to 893. Inventory levels in Chattanooga rose by 43.6%, bringing the total number of available homes to 3,006. However, even with more choices on the market, the median sales price in Chattanooga rose by 11.1%, from $314,900 to $350,000, further illustrating the trend of rising home prices.
On average, homes in the Chattanooga area are taking longer to sell, with Days on Market up 31.4% to 46 days, while the Months Supply of Inventory increased by 40%, reaching 3.5 months. This reflects a broader trend of slowing sales, as inventory levels are rising but buyers remain more cautious.
Nationwide, there were 1.39 million homes for sale heading into October, a 1.5% increase from the previous month and a 23% jump from the same period last year, resulting in a 4.3-month supply of homes at the current sales pace. Even with these improving supply conditions, home prices continue to climb, signaling that the market is still seeing upward pressure on pricing despite slower transaction volumes.
Overall, while the broader U.S. housing market is experiencing slower sales and longer time on market, regional markets like Chattanooga are seeing a mix of rising inventory and higher prices as local demand remains strong. #HousingMarketTrends #RealEstateUpdate #ChattanoogaRealEstate #HomePrices #InventorySurge #NAR