It’s crazy to think we are already half way through 2023! While the real estate market has been ever changing, it has still been a busy year so far. The most common question people ask is– how’s the market going? So let’s talk about how the first half of 2023 has been.

How is the current market?

It is still a seller’s market. WAIT! Don’t leave! It may still be a seller’s market, but it is not the same type of seller’s market that we saw in 2020, 2021, and 2022. Interest rates, inventory, days on market all look very different from this time last year. So what does that mean?

Interest rates are higher than they have been in the previous years. A significant amount of people either bought or refinanced within the last few years to take advantage of the lower interest rates and are holding onto them because those rates are saving them hundreds even thousands of dollars in some cases. How does this effect the market? It means people aren't selling. The house inventory is still incredibly low compared to the number of people buying.

According to the Greater Chattanooga Realtors reports for the month of June 2023, the number of new listings in our area decreased 26.7% (compared to last year) to 1,219. The shortage of homes for sale has kept prices higher for remaining buyers. The June reports show that the current median sales price is $339,950, which is up from the June 2022 report of $328,725. This is why it is still a seller’s market. 

There is still good news for buyers though!

While the type of market is still the same, all of the numbers are not. The number of days a house was on the market was up 130.8% from June 2022. Last year the average number of days on market was 13, where as this year it is 30. Why does this matter? In many cases, buyers from 2019 to 2022 were competing against 10, 20, and even 30 other buyers just for one house. They felt like they had to offer everything they owned and then some just to have any sort of chance at getting their offer accepted. While there are many multiple offers still happening, this is some relief from the overwhelming competition. In many cases, buyers are starting to feel empowerment when it comes to their offers and ability to negotiate. 

What can we expect in the second half of 2023?

It depends.

We are seeing the numbers shift, but there are many variables that go into what this market means for you. Price points, location, home updates are just a few factors can affect your overall experience. For example, some price points are seeing longer days on market while other price points are still receiving multiple offers within 24 hours of listing.

This is why having an expert real estate agent in your corner is crucial to competing in today’s market. Having an experienced agent on your side to help navigate this changing market is key when planning out your strategy in order to reach your real estate goals. 

If you've been interested in buying or selling your home, let's chat! Fill out the form below and we will reach out to discuss what this market looks like for you and create a strategic plan to help you reach your real estate goals!