The Chattanooga real estate market continued to demonstrate its resilience in October as sales increased over last year despite a significant decrease in the amount of available homes for sale.
In October, Realtors in the Greater Chattanooga region sold 793 residential units compared to 788 in 2016. This .6 percent increase in sales pushed the year-to-date total to 8,250 homes for a .7 percent increase.
This increase in sales was achieved despite a 24.5 percent decrease in the number of available units for sale. The region ended October with just 2,909 homes on the market for sale – a record low in modern history.
Buyer confidence remained high, and resulting demand pushed the median sales price up 2.9 percent to $175,000 for the month. At the same time, the average sales price hit $211,202, which is a 5.8 percent increase compared to the same period last year. The average price stands at $210,127 for the first 10 months of 2017, which is a strong increase compared to last year’s average through October of $193,763.
Low inventory and strong demand meant homes sold at a near record pace. The average home took 54 days from listing date until it was placed under contract. This represented a 12.9 percent decrease from October 2016 and decreased the YTD average to 59 days on the market.
As would be expected, the months’ supply of inventory dipped to 3.5 months in October. This represents a 27.1 percent decrease from last year and is less than the national average, which has been running at four months of supply.
The number of new listings coming to market remained very consistent with the year’s trend. In October, new listings decreased 6.9 percent from last year, which falls in line with the YTD trend of minus 6.8 percent.
While no one has a crystal ball, there is one indicator that gives clues to future months sales trends. The number of contracts written but not yet closed, known as pending sales, saw a strong surge in October. Area Realtors placed 849 homes under contract in October, which is a 21.6 percent increase over last year. This would indicate that sales for November and December should be strong and ensure the region ends the year on a positive sales path.