February 2023 Local Housing Market Statistics
In February, throughout the country buyer demand continued to be down from its peak level. Home prices continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring.
Also, in its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% - 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-tomonth as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR).
Here in our neck of the woods, New Listings in the Chattanooga region decreased 12.9% to 936. Pending Sales were down 6.3% to 918. Closed sales were down 9.6% to 787 compared to February 2022 were 871 properties were sold. Inventory levels grew 57.1% to 1,529 units. This is a remarkable increase over February 2022, in which only 973 homes were available.
Prices continued to gain traction. The Median Sales Price increased 3.3% to $297,500. In February 2022, the Median Sales Price was $288,000. Days on Market was up 85.7% to 39 days. For comparison, the Days on Market for February 2022 was only 21 days. Buyers felt empowered as Months Supply of Inventory was up 77.8% to 1.6 months.
So inventory is increasing, and prices are stabilizing. These factors are just a few of the reasons why it is absolutely critical to utilize the expertise of a Realtor®. We are bound by our Code of Ethics to make sure that our clients’ needs are met responsibly. Realtors® work tirelessly for their clients and provide expert knowledge. That’s Who We R®.
Founded in 1912, Greater Chattanooga REALTORS® is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga REALTORS® serve Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade, and Walker counties in northwest Georgia. The Association is one of approximately 1,100 local associations/board of REALTORS® nationwide that comprise the National Association of REALTORS®. Greater Chattanooga REALTORS® owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local Association membership is comprised of REALTORS® servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multi-family, property management and residential. Working alongside REALTORS® are our Affiliate members, who represents related industries in sympathy with the objectives of the Association. Our Affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.