I’m a data guy. I love numbers, and the more information I have, the better.
In real estate, more data can mean getting a better look at long-term trends, which can lead to better informed decisions.
I often look at monthly housing data compared to the data from a year or two ago. But what if we looked at what the data says about housing over a longer period?
Taking a 10-year view of the real estate market in our area can provide valuable insights. Not only can it show us how the market has changed over time, but it can also highlight how real estate is impacted by external factors such as economic growth and recessions and how it could potentially change in the future.
With that in mind, let’s take a deep dive and see what we learn.
The number of available homes at the end of each year has dropped consistently, but rose significantly in 2022
At the end of 2012, there were just over 4,500 properties available in the Chattanooga area. Because of the shifting housing market, this number reached an all-time low at the end of 2021, which showed only 900 homes available.
However, this number increased at the end of 2022, with nearly 1,800 properties available. These numbers show reduced housing inventory and increased home sales, which is also noteworthy.
The number of homes sold each year has increased steadily since 2012 and reached a high in 2021 before dropping slightly in 2022
Low interest rates and a strong economy have certainly impacted home sales in the past decade. More properties have sold over the years and are being sold faster. (More on that later.)
In 2012, 6,663 properties were sold in the Chattanooga area. This amount peaked in 2021 with almost 13,000 sold. In 2022, this dropped slightly to just over 11,500. This decrease is most likely due to a dramatic increase in mortgage rates.
The average time it takes for a property to be under contract has dropped significantly since 2012
Consider anyone you know who sold a house in the past few years. They might share stories about multiple offers, people making offers sight unseen and properties being sold mere hours after hitting the market.
But this hasn’t always been the case. In fact, the average Days on Market was a whopping 129 days back in 2012. This timeframe dropped steadily over the last few years, reaching a low of just 20 days on average in 2022.
In short, homes have been selling fast! All these factors have combined to cause a dramatic increase in home prices in the past 10 years.
The median home sales price in our area has increased dramatically over the past 10 years
In 2012, the median sales price was $137,000, while in 2022, it rose to $305,000 – a jump of 122%. Again, an increase in demand for housing, low interest rates and a booming economy are all contributing factors.
Depending on your perspective, this increase can be either a blessing or a curse. On the one hand, it’s excellent news for those who already own a home, as their asset has likely grown in value. On the other hand, the increase in home prices has made it increasingly difficult for first-time homebuyers to enter the market.
We need to find a solution to this problem, as it affects many people and can have long-term implications for the housing market.
The housing market in our area has certainly changed in a decade, but the main takeaway from this data is that homeownership has been, and looks to remain, an excellent way to build personal wealth.
Do you have questions about what’s involved with entering the market? Consult a Realtor. A Realtor will work with you to understand your housing needs and can advise you on which path might be best for you.
Realtors are the professionals you want to turn to when buying or selling a home. We have access to a wealth of knowledge and resources most real estate agents might not have.
Realtors are held to a higher standard of conduct and ethics than real estate agents and must abide by a strict code of ethics and standards of practice.
We have access to the multiple listing services (MLS), which provides access to a wide range of property listings, allowing us to better serve clients.
Realtors are also well-versed in local market conditions, which can be invaluable in helping you make informed decisions.
We also provide valuable assistance with the paperwork and the negotiations that need to take place during a real estate transaction.
Above all, Realtors work for their clients and community to help people achieve homeownership. That’s Who We R!
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.