In August, the housing market showed few signs of cooling off. School has started, and the majority of students are reporting for in-person schooling. But the hot real estate market isn’t just limited to single-family homes; the rental market is quite hot as well.
The booming U.S. housing market has spilled over to the rental market with demands for apartments and single-family rentals. This demand is a result of high sales prices and an inadequate supply of available inventory. Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.
In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.
So how have these factors affected housing in our area? New Listings in the Chattanooga region increased 5.1% to 1,376. Pending Sales were up 9.7% to 1,266. Inventory levels shrank 32.1% to 1,257 units.
Prices continued to gain traction. The Median Sales Price increased 9.2 % to $270,000. Days on Market was down 59.5% to 17 days. Sellers were encouraged as Months Supply of Inventory was down 36.8% to 1.2 months.
Inventory continues to be an issue, which means that it’s more important than ever to work with a Realtor® to help navigate such a fast market. Regardless of the season, working with a Realtor will ensure that your housing needs will be in good hands. Serving our communities and homeowners nationwide, That’s Who We R.