As we begin the slower time of year for home sales, historically low mortgage rates will continue to support buyer demand and may create additional lift to home prices as excellent affordability gives buyers the ability to offer more to secure their dream home. Throughout much of the country, the continued low level of housing inventory also continues to constrain sales activity from where it would likely be in a balanced market.
In October, mortgage rates increased slightly from the three-year lows seen in September. While the Federal Reserve reduced the federal-funds target rate by .25%, this decline was widely expected and largely factored into mortgage rates already, which are still approximately 1% lower than this time last year. Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020.
New Listings in the Chattanooga region decreased 4.0 percent to 1,130. Pending Sales were up 9.1 percent to 874. Inventory levels shrank 12.6 percent to 2,805 units. Prices continued to gain traction. The Median Sales Price increased 14.1 percent to $210,000. Days on Market was down 12.2 percent to 43 days. Sellers were encouraged as Months Supply of Inventory was down 20.5 percent to 3.1 months.
Markets may change, but Realtors’ commitment to serving our clients doesn’t. Navigating a market that
can shift quickly is just one reason why consulting a Realtor is so important. We keep a watchful eye on
trends locally and nationally that might affect our clients and community. That’s Who We R®.