As we move deeper into 2025, the housing market continues to evolve both nationally and locally. While U.S. pending home sales dipped last month, our Chattanooga region is showing its own unique trends. With increased inventory and rising median sales prices, it’s clear that buyers and sellers are adjusting to the current market conditions.
U.S. pending home sales slipped 4.6 percent month-over-month and 5.2 percent year-over-year, according to the National Association of Realtors. Economists polled by Reuters had forecast contract signings falling 1.3 percent for the month.
Pending sales decreased on a monthly basis in the midwest, south and west, but increased slightly in the northeast, with sales down in all four regions year-over-year.
The Chattanooga housing market continues to show signs of shifting dynamics, with key indicators revealing notable changes in both buyer and seller activity.
For the week ending March 1, new listings saw a modest increase of 2.4 percent compared to this time last year, totaling 298 properties added to the market.
This slight uptick in new listings offers potential buyers more options as we approach the busy spring season.
However, pending sales — a key indicator of buyer demand — decreased by 10.9 percent to 212 transactions. This dip may suggest that some buyers are hesitating due to interest rates, economic concerns or affordability challenges. Despite this slowdown, homes that are priced correctly and show well continue to attract motivated buyers.
Inventory levels surged by 36 percent, reaching 2,847 active listings. This boost in available homes is a positive sign for buyers who have faced limited options in recent months. A larger pool of properties may ease competition and create more negotiating power for those actively searching.
When looking at February as a whole, the median sales price rose 8.2 percent to $330,000, continuing the trend of rising property values. This increase reflects the ongoing demand for homes in desirable neighborhoods and well-maintained properties that are move-in ready.
Meanwhile, days on market climbed by 23.4 percent to 58 days, indicating that some properties are taking longer to sell. With inventory growing, buyers now have more choices, which may require sellers to be more strategic with pricing and presentation to attract offers.
Percent of original list price received dropped slightly by 1.1 percent to 94.9 percent, signaling that sellers may need to adjust expectations as competition levels shift.
Lastly, the months’ supply of inventory — a measure of how long it would take to sell all available homes at the current pace — increased 36 percent to 3.4 months. While this is still below the five-six months considered a balanced market, this increase shows a slow but steady shift toward more favorable conditions for buyers.
Together, these figures indicate a market that’s adjusting but still offers opportunities for both buyers and sellers. Whether you’re considering listing your home or searching for the right property, staying informed about these trends will help you make strategic decisions in Chattanooga’s evolving real estate landscape. #ThatsWhoWeR