By DON FENLEY
GRAY, TN – Have you ever heard the saying, “you can’t sell out of an empty wagon?” It’s a reality local real estate professionals have struggled with for a little over two years, according to the Northeast Tennessee Association of Realtors (NETAR).
Inventory was tightening in the fourth quarter of 2020. Then it went super tight in 2021 when the regional inventory report dropped below two months supply. Realtors® searching in some of city and community submarkets saw inventory drop to a level they had never seen.
That’s why the pending sales report headline that said spring inventory was beginning to show up got so much attention.
It’s true that the inventory picture is beginning to brighten. At the end of Jan., the region had a 1.7 month-supply. Unfortunately, it’s been bouncing around at that level since Aug. last year.
What has been increasing is the monthly active inventory. The reason the month’s supply barely changes is the number of pending sales have also increased. It wasn’t as much as the new listings rate, but it was enough to keep the month’s inventory stagnant.
It’s also why there hasn’t been a lot of downward pressure on prices. Prices have slowly ebbed lower for the past several months, but like the inventory increase, it’s moving at a snail’s pace.
The inventory wagon won’t be overflowing, but barring some unexpected upset, there will be more homes on the market that what’ve the market has experienced for the past two years.
Categories: REAL ESTATE
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