February 2026 Housing Market Update

February 2026 Housing Market Update

Despite improving affordability, U.S. existing-home sales declined 8.4% to a seasonally adjusted annual rate of 3.91 million, marking a 4.4% decrease compared to the same time last year, according to the National Association of REALTORS (NAR). This drop followed a 5.1% increase the previous month and several months of modest gains during the fall. Sales declined both month-over-month and year-over-year across all four regions of the country.

In the Chattanooga region, new listings rose 8.2% to 1,350, while pending sales increased significantly by 22.5% to 931. Housing inventory also grew 18.6%, reaching 3,404 homes available on the market.

The median sales price saw a slight decrease of 0.3%, dropping from $330,500 to $329,500. Meanwhile, days on market increased 14.0% to 65 days, and the months’ supply of inventory rose 14.7% to 3.9 months.

Nationally, the median existing-home price increased 0.9% year-over-year to $396,800, setting a new record for the month, according to NAR. Home prices continue to rise in many areas due in part to limited housing supply, which remains below pre-pandemic levels. Total housing inventory reached 1.22 million units in the latest report up 3.4% from a year ago equivalent to a 3.7-month supply at the current pace of sales.