Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.
New Listings in the Chattanooga region increased 3.0 percent to 1,323. Pending Sales were up 8.4 percent to 1,019. Inventory levels shrank 23.3 percent to 2,467 units.
Prices continued to gain traction. The Median Sales Price increased 5.1 percent to $186,000. Days on Market was down 12.5 percent to 49 days. Sellers were encouraged as Months Supply of Inventory was down 25.0 percent to 3.0 months.
Although home sales may drop in year-over-year comparisons over the next few months, that has more to do with love inventory than lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals that were in place a decade ago.
Get a more detailed look at May 2018’s Home Sales numbers and connect with a Realtor. Whether you’re looking to buy, sell, or simply stay in-the-know with what’s happening in Greater Chattanooga real estate, you can count on us to keep you in the loop.