Despite a continued drop in the inventory of homes on the market, Chattanooga Realtors boosted home sales again last month, bucking a nationwide drop in Realtor-assisted home sales.
The Greater Chattanooga Association of Realtors reported Thursday home sales in August rose 4.5 percent over a year ago to help keep Chattanooga on pace for another record year of home sales. Local Realtors sold 887 single-family homes last month, up from 835 the previous month and 849 a year ago.
The sales gains came despite higher median prices and fewer homes on the market in Chattanooga and a drop in home sales nationwide. The median price of homes sold last month in Chattanooga was $167,000, or 6.1 percent more than a year ago. But Chattanooga home prices, on average, were still 30.5 percent below the U.S. median sales price of $240,200 in August,
In most markets, Americans retreated from home-buying last month, as a worsening inventory shortage appears to be hurting sales and pushing prices higher.
Sales of existing homes slipped 0.9 percent last month to a seasonally adjusted annual rate of 5.33 million, the second straight monthly decline, the National Association of Realtors said Thursday.
Inventory has collapsed 10.1 percent from a year ago to 2.04 million homes.
"Inventory woes continue to introduce supply gridlock for homebuyers," said Ralph McLaughlin, chief economist at the real estate firm Trulia. "Those who want to sell their home might not do so because finding another home is difficult."
Lawrence Yun, NAR chief economist, also said recent job growth is not yielding higher home sales.
"Healthy labor markets in most the country should be creating a sustained demand for home purchases," he said. "However, there's no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold."
Chattanooga Realtors last month also did not match the June peak reached in home sales, which local Realtors sold 974 homes. But pending sales of homes remained up in August, suggesting that this month should also show sales gains.
In the first eight months of 2016, Chattanooga Realtors sold a total of 6,475 homes, or 9.3 percent more than in the previous record year for homes sales in 2015.
Separately, the real estate firm Zillow reported Thursday that rents rose 1.7 percent over the past 12 months to a national median of $1,405 a month. A year ago, rents were climbing at a 6 percent clip.
Buyers are getting some help from mortgage rates that have stayed near historic lows.
Mortgage buyer Freddie Mac said the average 30-year fixed-rate mortgage stood at 3.48 percent this week, down from a 3.86 percent a year ago. The average rate has historically been closer to 6 percent.