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February 15, 2023

January 2023 Local Housing Market Statistics

When one looks at the big picture, the national housing market began the year in a state of rebalance with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5%, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.

As sales slow, time on market is increasing with the average home spending 26 days on market, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.

Locally, our housing market reflected some of these national trends. New Listings in the Chattanooga region increased 7.7% over January 2022 (888 to 956). Pending Sales were up 0.6% January 2022 (928 to 934). Inventory levels grew 68.9% over January 2022 (974) to 1,645 units. Prices were fairly stable. The Median Sales Price decreased 0.2% from January 2022 ($290,000) to $289,450. Days on Market was up 71.4% over January 2022 (21 days) to 36 days. The Months Supply of Inventory was up 88.9% over January 2022 (0.9 months) to 1.7 months.

So what can we take away from this data? One might conclude that the increased housing inventory, along with the trend of dropping interest rates, could combine to make this spring a time of renewed home purchases. Make sure to utilize the expertise of a Realtor who will work tirelessly on your behalf. Realtors work with clients all throughout the year to help with their client’s homebuying and selling needs. That’s Who We R®.