March 2023 Local Housing Market Statistics
ABR, C2EX, ePRO, GRI
2023 President,
Greater Chattanooga REALTORS®
March usually signals the beginning of the home buying and selling season, and on a national level, existing home sales jumped 14.5% month-over-month in February, which was the first monthly gain in 12 months. This is the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, which caused a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.
Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.
Taking a look locally, in March New Listings in the Chattanooga area decreased 12.8% to 1,170. However, the total available housing Inventory grew 42.6% over March 2022 (1,079) to 1,539 units. Pending Sales were down 7.3% to 1,031.
Prices continued to gain traction. The Median Sales Price increased 5.0% over March 2022 ($300,000) to $315,000. Days on Market was up 89.5% to 36 days.
Buyers felt empowered as Months Supply of Inventory was up 70.0% to 1.7 months.
No matter the time of year, and no matter the market, utilizing the knowledge and expertise of a REALTOR® is key to helping navigate the complex process of buying or selling a property. Realtors® provide valuable insight into the local market, help negotiate offers, and ensure that all legal and financial requirements are met. Realtors® work for their clients and communities every day. 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.