The Market's Path to Stability
Summer is here, and with it comes a sense of relief for homebuyers and sellers in the Chattanooga area. The real estate inventory has remained steady at around 1,200+ listings for several months now. While this figure is still below historic averages, it is a significant improvement compared to the painfully low number of available homes in 2021 and early 2022. So, what does this mean for the market?
Despite the lingering shortage of inventory, there are positive signs of stabilization. The days on market have been inching up and have now surpassed 40 days. Although this is still below historic averages, it is a considerable departure from the frenzied peak of the market. However, home prices continue to hold their ground and show no signs of decreasing in the foreseeable future. The scarcity of inventory, while posing challenges for buyers, is effectively contributing to market stabilization. Additionally, the continuous influx of new residents into the area is further propelling property values higher. What's particularly interesting is the growing demand for homes that require minimal work after the buyer moves in. It seems the era of "any house at any price" is behind us, with buyers increasingly seeking properties that are move-in ready.
The Interest Rate Conundrum
Unfortunately, there isn't much good news to report on the interest rate front. Although rates have slightly declined from their recent highs, they remain a tough pill to swallow for potential buyers. Lenders have become more creative, offering various loan products to soften the blow. Some even provide a free refinance within the next five years, allowing homeowners to capture a lower rate once the markets stabilize. As the saying goes, "you date the rate but you marry the house." Currently, good rates are expected to fall between 5-6%, but they currently hover in the 6-7% range. This range has remained relatively stable for months, creating the perception that it might be the "new normal" for interest rates.
A Successful Year in Chattanooga Real Estate
Anecdotally, it has been a banner year for the Chattanooga real estate market. Our team has been busy helping families navigate successful moves, and we're on track to assist over 34 families by the end of June. While it may seem counterintuitive that the market would be booming given the inventory constraints, Chattanooga continues to defy expectations.
Is it Still a Good Time to Buy or Sell?
In Chattanooga, the answer is a resounding yes. Despite the challenges presented by limited inventory and slightly higher interest rates, it is still a great time to buy and sell property in this vibrant city. Our team is dedicated to finding creative solutions to ensure your move is as seamless as possible. Whether you're a buyer or a seller, feel free to reach out to us to discover the various ways we can make your real estate journey an easy and rewarding one.
So, let's dive into the market and take advantage of the opportunities summer brings. Whether you're looking to sell your "DONE" home or searching for your dream property, Chattanooga's real estate market is waiting for you.