We started off the year with continued low interest rates, low unemployment and rising rents across the country. These factors should encourage healthy buyer demand and sets us up for a strong start to the 2020 housing market and a lot of optimism for the coming spring market.
Lawrence Yun, National Association of Realtors chief economist, sees good news for home prices for the rest of the year. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4%,” Yun predicts.
Yun also is expecting the new home construction market sales to increase 10%. He and others would like to see homebuilders bring more affordable units to market to help ease shortages and slow price gains in that segment.
In Chattanooga, new listings decreased 5.6% to 1,022. Pending sales increased 19.5% to 890. Inventory levels shrank 21% to 2,257 units.
Prices continued to gain traction. The median sales price increased 13.9% to $205,000. Days on market declined 8.1% to 57 days. Sellers were encouraged as months supply of inventory was decreased 29.4% to 2.4 months.
It’s worth noting that closed sales (number of homes sold) in January 2020 was 26.7% more than January 2019. That’s a difference between 555 and 703 homes. The weather might be cool, but the housing market certainly is not.
Markets might change, but Realtors’ commitment to serving our clients doesn’t. Navigating a market that can shift quickly is just one reason why consulting a Realtor is so important.
We keep a watchful eye on trends locally and nationally that might affect our clients and community. That’s Who We R.
Greater Chattanooga Realtors is The Voice of Real Estate in Greater Chattanooga. A regional organization with more than 2,000 members, Greater Chattanooga Realtors is one of some 1,300 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee Catoosa, Dade and Walker counties in northwest Georgia. For more information, visit www.gcar.net or call 423 698-8001.