The start of a new year brings fresh insights into the evolving real estate market, which continues to show signs of resilience and growth. Recent data from the National Association of REALTORS® (NAR) highlights positive trends, including an eight-month high in U.S. existing-home sales. While inventory challenges persist, the activity in the market—both nationally and locally—offers an optimistic outlook. Here's a closer look at the latest market trends and their impact on the Chattanooga region.
U.S. existing-home sales improved for the second consecutive month, rising 4.8% to a seasonally adjusted annual rate of 4.15 million units, an eight-month high, according to the NAR. Sales were up 6.1% compared to the same time last year, marking the largest year-over-year increase since June 2021. Economists had forecast existing-home sales would come in at an annual rate of 4.07 million units for the month.
New Listings in the Chattanooga region increased 1.8 percent to 784. Pending Sales increased 7.7 percent to 643. Inventory increased 29.2 percent to 2,634.
Median Sales Price increased 12.5 percent from $300,000 to $337,500. Days on Market increased 22.0 percent to 50. Months Supply of Inventory increased 25.0 percent to 3.0.
Total housing inventory stood at 1.33 million units heading into December, a 2.9% decrease from the previous month but a 17.7% increase year-over year, for a 3.8-month supply at the current sales pace. Inventory remains below the 5 – 6 months’ supply of a balanced market, and the limited number of homes for sale continues to put upward pressure on sales prices nationwide, with NAR reporting a median existing-home price of $406,100, a 4.7% increase from one year earlier.
While inventory challenges persist both nationally and locally, the recent uptick in sales and steady price growth is a promising sign for the housing market as we move further into 2025. For buyers and sellers navigating this dynamic landscape, working with a Realtor remains key to making informed decisions. Realtor bring essential expertise to every transaction, helping clients understand the nuances of today’s market while advocating for their best interests. As we continue monitoring the trends, one thing remains clear: Greater Chattanooga’s real estate market is poised for continued opportunity and growth.