Even while the pace of home price acceleration normalizes, housing has shown recent signs of ongoing strength. Both housing starts and future building permits are on the rise nationally. Inventory levels are increasing in most metro areas, driven higher by rising prices and more confident sellers. Homes are still selling quickly and for close to or even above list price.
For October, New Listings in the Chattanooga region decreased 7.2 percent to 947; however, year-to-date comparisons reflect only a 2.2 percent decrease to a total of 10,420 new listings so far in 2014.
Pending Sales were down 32.2 percent to 403; yet, again, year-to-date comparisons are more positive and show only a 2.7 decrease. For the year, Pending Sales currently total 6,077.
Closed Sales are up 18.4 percent with 688 in October and 6,207 for the year.
Inventory levels shrank 9.1 percent to 4,877 units. Sellers were encouraged as Months Supply of Inventory was down 6.7 percent to 8.3 months.
Prices continued to gain traction. The Median Sales Price increased 5.5 percent to $145,000, which is in line with the year-to-date 5.4 percent increase to $147,500.
Days on Market was up 2.6 percent to 120 days, which puts Greater Chattanooga’s 12-month average Days on Market at 129 days.
Interest rates remain attractive, even as Federal Reserve banter is finally hinting that quantitative easing is reaching its fateful conclusion. Capital markets have exhibited some volatility, but, ultimately, it’s all about earnings and growth, and corporate earnings have been encouragingly strong, while private job gains have recently exceeded expectations.
The Greater Chattanooga Association of Realtors is “The Voice of Real Estate in Greater Chattanooga.” The Association is a regional organization with more than 1,400 members, and is one of more than 1,400 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. The Greater Chattanooga Association of Realtors services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. For more information, visit www.gcar.net.