The Chattanooga Real Estate Monday Market report for July 11th, 2022 will discuss housing inventory. Why is the inventory levels rising? How does this compare to the past? Will it affect our home values? How does it effect the home buyer?
Find out all this information and more in this episode of the Monday Market Report.
You have no doubt noticed the real estate market has begun to change. We have more inventory of homes and the purchasing market has begun to slow down. . The number of offers on homes has dropped from an average of 6.2 offers per listing to 4.5 offers over the last few months. At the same time, the number of offers over listing price have dropped from 62% to 55%. (Which is still very high).
What we want to discuss to day is why.
Listing Volume
As you notice from the graph below, the volume of new listings coming on the market has continued to grow over the last couple months.
Sales Volume
So what causes the rise in inventory? The amount of sales have begun to come back to 2019 levels, pre-pandemic sales rates due to inflation and the rise in interest rates. The orange bar is the projected sales for this year.
Active Inventory
You can see below, in the blue and grey lines the normal amount of active inventory in a sellers market. A market that we were had pre-pandemic. In 2020, people were listing less homes but the demand to buy has still been great. This drove the inventory down (orange line). 2121 held on to the low inventory mark but now you can see that the inventory has started to rise. (The dark blue line.) We expect to continue to rise for the remainder of the year.
Please watch the video for a more in depth view of what is happening with the inventory in our Chattanooga real estate market. To learn more about absorption rate and the months of inventory, see our tutorial on absorption rate by clicking here.
