September 2024 Real Estate Market Update: What You Need to Know

As we move into the cooler months of the year, the East Tennessee real estate market is following some familiar seasonal trends. September often signals the beginning of a slow-down, with fewer homes hitting the market, but the data reveals some interesting dynamics that are important to note for both buyers and sellers.

New Listings Looking at September 2024, we’re seeing a similar trend to previous Septembers, particularly when compared to 2021, which saw a slight uptick in new listings. This year’s numbers align with the usual pre-holiday slow-down as homeowners typically hold off listing their properties until the spring. This is a good reminder for sellers that fall can still be an opportune time to list, as competition is often lower.

Active Listings Inventory is looking healthier compared to the past few years. The number of active listings remains on par with the previous month and is quite similar to 2019. This steady increase in buyer options, which began in early 2023, signals a shift towards a more balanced market—one we haven’t seen since pre-pandemic times. Buyers who have been waiting for more options should take note, as we’re steadily moving away from the seller-dominated market of recent years.

Sales Pending September 2024 brought an increase in pending sales compared to last September, suggesting that buyers are beginning to adjust to the current interest rate environment. While there was a slight dip from August, this seasonal decline is typical and isn’t a cause for concern. The recent easing of interest rates may have encouraged more buyers to lock in their purchases before further changes.

Closed Units September closings took a noticeable dip, which is to be expected at this time of year. The only exception was in 2020 when the market was highly irregular due to unique factors. High interest rates and prices continue to put pressure on the market, but this is in line with the Federal Reserve’s goal to temper demand and slow the rapid rise in home prices.

Months of Supply We’re seeing a 5-month supply of homes, back to where we were in January. This number has climbed thanks to the combination of more listings and fewer closed transactions. While a 6-9 month supply is generally considered a balanced market, the current figure still indicates a seller’s market—though not as dominant as in previous years. This slight easing is good news for buyers looking for better opportunities.

Median Sales Price Despite some cooling, sellers remain in the driver’s seat. The median sales price has edged up to around $370,000. While we are seeing more price reductions as some homes enter the market with higher-than-expected asking prices, there is still strong demand. Should interest rates drop, expect a resurgence of buyers, which could push prices even higher.

Average Days on Market Homes are staying on the market for about 40 days on average, a number that feels closer to “normal” compared to the lightning-fast sales pace of 2020 and 2021. Unless interest rates fall substantially, we may see this figure rise as some buyers continue to take a cautious approach.

These trends highlight a market in transition, one that is slowly balancing out after years of heavy demand and low inventory. Whether you’re buying or selling, it’s important to stay informed and strategize accordingly as we head into the final months of 2024.

*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.