The latest national existing home sales made one of the largest jumps ever in February. There was an 11.8% increase in existing home sales. Though existing home sales were up 11.8% February home sales were down from last February's home sale by 1.8%. During February 2018 there was a buying frenzy with multiple offers to start out that year. The median home sales price was up by 3.6% matching wage increases according to Lawrence Yun, the National Association of Realtors (NAR) Chief Economist. That is good news when the rising home prices have been outpacing wage growth for most of 2018. The national supply of homes for sale is up by 3.2%, which is also good news towards normalizing the real estate market. Homes are selling 8% slower than last year (37 days last year compared to 44 days this year). That is still not much of a difference, but the home buyer pace may be less frantic than in 2019. If you put together the wage growth + low interest rates (due to the Federal Reserve deciding not to raise rates this year) + extremely low unemployment + a slightly slower homes sale pace, you get a very strong real estate market.
Locally, in Chattanooga real estate, it has felt like the real estate market shifted into high gear in March. After the record breaking rains stopped, people started looking at homes and buying homes at a fast rate. I had 5 closings in the first week of April, meaning home buyers were busy in March. April has started out with many new contracts to purchase as well. Most agents I am speaking with have had the same high level of home buying and selling traffic.
Both in Chattanooga and nationally, moderately priced homes are still in short supply.