January 2026 Market Update

U.S. existing-home sales increased by 5.1% month-over-month and 1.4% year-over-year, reaching a seasonally adjusted annual rate of 4.35 million units, the strongest level in nearly three years, according to the National Association of REALTORS® (NAR). Lower mortgage rates and slower home price growth helped boost buyer activity, with sales rising month-over-month across all regions. Year-over-year, sales increased in the South, remained stable in the West and Midwest, and declined in the Northeast.

In the Chattanooga region, new listings rose 15.5% to 1,407, while pending sales increased 8.9% to 823. Inventory also expanded 21.6% to 3,317 homes.
The median sales price grew 1.5%, from $325,000 to $330,000. Days on Market increased 12.5% to 63 days, and months of supply rose 18.8% to 3.8 months, indicating a gradually balancing market.

Nationally, there were 1.18 million homes for sale entering January, down 18.1% from the previous month but up 3.5% year-over-year, representing a 3.3-month supply at the current sales pace, per NAR. The median existing-home price increased 0.4% year-over-year to $405,400, signaling continued moderation in national price growth.