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July 2024 East Tennessee Real Estate Market Update: A Steady, Resilient Market
As we reach the height of summer, the East Tennessee real estate market continues to demonstrate its resilience and adaptability. With the July statistics now in, we can see how the market is evolving in response to current conditions.
Here’s a closer look at the key trends and what they mean for both buyers and sellers in our region.
New Listings: Seller Confidence Returns
July saw a notable increase in new listings compared to the same time last year, bringing us back in line with 2022’s activity levels. This uptick suggests that sellers are gaining confidence despite higher interest rates. The “lock-in” effect, where homeowners were reluctant to sell due to previously secured low-interest rates, seems to be loosening. As sellers acclimate to the new normal, they are taking action and listing their homes, contributing to a more balanced market.
Active Listings: A Welcome Boost for Buyers
The number of active listings continues to rise, offering more choices for buyers. While we haven’t yet reached the inventory levels of 2019, which many consider the last “normal” year, the increase in available homes is a positive sign. For buyers, this means more options and potentially less competition than in recent years, creating a more favorable environment for making purchasing decisions.
Sales Pending: Steady Momentum
In July, we saw a slight increase in homes going under contract compared to the same period last year. This is reminiscent of the bustling market of 2022, even if the pace feels slower compared to the Covid years, when the market was extraordinarily active. The steady momentum in pending sales indicates that buyer demand remains strong, even as the market normalizes.
Closed Units: Transactions Continue Despite Rate Challenges
The number of closed transactions also exceeded last July’s figures, showing that despite the challenges posed by higher interest rates, the need for real estate transactions persists. Last year, there was hope that rates might drop, causing some buyers to hesitate. However, with no significant rate relief in sight, life moves forward, and buyers are proceeding with their plans.
Months of Supply: Demand Remains Strong
The months of supply in July reached a peak for the year, yet we remain below the six-month mark that indicates a balanced market. With less than five months of supply, it’s clear that demand for homes is both organic and steady. Homes continue to sell quickly, underscoring the ongoing vitality of the East Tennessee market.
Median Sales Price: Record-Breaking Year
As demand holds strong, median sales prices continue to set new records month over month. So far, 2024 is on track to be the year with the highest median sales price in MLS history. This trend highlights the sustained value of real estate in East Tennessee, making it a robust investment for both current and prospective homeowners.
Average Days on Market: A Return to Normalcy
The average days on market (DOM) sits comfortably in the middle of the spectrum. While homes aren’t selling within hours as they did during the peak years of 2021 and 2022, the pace is only slightly slower than last year. With a bit more inventory available, buyers have more time to make informed decisions, contributing to a healthier market dynamic.
Conclusion: A Market to Watch
Overall, the July 2024 market statistics reflect a resilient East Tennessee real estate market that is adjusting to current conditions with poise. For agents, these trends offer a wealth of opportunities to guide clients through the buying and selling process with confidence. Whether you’re working with first-time buyers, seasoned investors, or homeowners looking to make a move, this market continues to present valuable opportunities for all.
As always, staying informed about these trends allows us to provide the best possible service to our clients. Let’s keep the momentum going as we move through the second half of the year!
