As spring comes to a close, inventory is growing and price growth has stayed in the single digits, which is exactly what we need for future affordability. But the market recovery has been more protracted than we predicted; to meet our forecast of a healthier annual 8.7% sales and 2.9% price growth, we may need a catalyst such as reduced mortgage rates.

April home sales were sluggish for East Tennessee at an 8% drop from last year, and national home sales marked a 7-month low according to the National Association of REALTORS® (NAR). According to the National Association of Home Builders (NAHB), multifamily permits have dropped and builder confidence is still low, raising the possibility of falling further behind on rental inventory for our middle-class residents.

While we would all prefer a more dramatic market recovery, the positive increase in existing home inventory, pending listings, days on market and months of supply show that stability is returning and should continue to improve throughout the summer. This newsletter takes a deep dive into inventory updates and the resulting outlook.