At a time of year when homebuying activity is typically very strong, soaring homeownership costs have caused home sales to decline nationwide for the fifth consecutive month. In addition, existing-home sales have fallen 5.4% month-to-month and 14.2% year-over-year, according to the National Association of REALTORS® (NAR). But there is a bright spot. Inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, equivalent to a three-month supply. And despite the summer slowdown, homes are still selling quickly, with the typical home staying on market for an average of 14 days.
The U.S. housing market has continued to cool, as rising mortgage rates and record-high sales prices have stifled affordability, weakening demand and pricing out many buyers. According to NAR, the median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80% more expensive now than they were just three summers ago. As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.
Looking locally, New Listings in the Chattanooga region decreased 13.3% to 1,393. Pending Sales were down 15.1% to 1,062. Inventory levels grew a significant 23.2% to 1,822 units. For some perspective, the number of homes for sale in July 2021 was 1,479. Prices continued to gain traction. The Median Sales Price increased 17.8% over the July 2021 amount ($263, 050) to $310,000. Days on Market was down 6.3% to 15 days. Buyers felt empowered as Months Supply of Inventory was up 21.4% to 1.7 months.
The housing market continues to shift every day, which is why it is so crucial to utilize the expertise of a Realtor®. Whether you’re buying or selling, or moving locally or across the country, Realtors have the knowledge and tools needed to make sure you are getting the most out of your investment. That’s Who We R®.