February Market Update
In the Chattanooga area market, we are grateful that prices continue to rise, rather than fall as they are in other markets around the country.
Larger metro areas, particularly in the west, have not fared well with cities like San Francisco, Austin, and Seattle experiencing price drops. Our local market never got quite as frenzied as those, and local demand continues to outpace supply. Inventory is slowly increasing, but supply still falls far short of demand.
For buyers, additional inventory means the return of some negotiation to the purchase process, with the average home selling for 96% of its listed price in February 2023. The average days on market for January 2023 was 39, up from 21 days in January 2022. For reference, in January 2019, the average days on market was 60. Interest rates may experience some moderate ups and downs, but drastic changes in either direction are not anticipated. With rates stabilized, buyers are better able to anticipate their purchasing power, and they are acclimating to rates in the 6 – 7% range, which is still historically great.
For sellers, strong prices means this is still a great time to sell. Unlike 2021 however, waiting a few months does not mean your home will be likely to command tens of thousands of dollars more, because appreciation has stabilized. Homes that are priced properly and marketed professionally are selling thanks to strong demand. This is the time to sell at a great price, and have more options if sellers are also in the market to purchase.