Across the U.S., sales of existing homes recently fell to a 13-year low, dropping 2.0% month-over-month and 15.4% year-over-year as of last measure, according to the National Association of REALTORS (NAR), as surging interest rates and elevated sales prices continue to make homeownership unaffordable for many prospective buyers. Purchase activity is down significantly compared to this time last year, but rising interest rates are also keeping many current homeowners from selling, causing inventory to remain at historically low levels nationwide.
Total national housing inventory going into October was at 1.13 million units, up 2.7% from the previous month but down 8.1% compared to the same time last year, for a 3.4 months’ supply at the current sales pace, according to NAR. The shortage of homes for sale is making it harder for buyers to find a home to purchase while at the same time pushing sales prices higher nationwide, with the median existing-home sales price rising 2.8% annually to $394,300, the third consecutive month of year-over-year price increases.
Looking locally, New Listings in the Chattanooga region increased 7.2% over October 2022 (1,066) to 1,143. Pending Sales were up 2.4% over October 2022 (778) to 797. Inventory levels shrank 8.3% from October 2022 (2,314) to 2,122 units. Prices continued to gain traction. The Median Sales Price increased 4.1% over October 2022 ($302,500) to $315,000. Days on Market was up 15.4% from October 2022 (26 days) to 30 days. Buyers felt empowered as Months Supply of Inventory was up 4.2% from October 2022 (2.4 months) to 2.5 months.
Regardless of what’s happening around the corner, or around the country, your best bet is utilizing the services of a realtor. Realtors work with their clients every day to help ensure that they get the most from their most valuable investment.