While some have noted a slight pause this year in the housing recovery, the American Dream of homeownership is alive and well. However, we must still contend with market fluctuations.
If buyers are expected to buy homes, they need homes for sale. Also, buyers need reliable financing, better jobs and stronger wage growth. The opportunities are out there, and it is important for people take advantage of them.
As we mentioned last week, inventory is on the rise, and buyers can take steps to position themselves for a successful closing. Evaluate finances and get preapproved for a mortgage. Work with a Realtor and make a clean offer with few contingencies.
For buyers out there looking, it’s encouraging that in May, New Listings in the Chattanooga region increased 6.4 percent to 1,227. Despite a slight shrink in inventory, levels shrank by 0.6 percent to 5,215 units. Also absorption rates slowed, as Months Supply of Inventory was up 4.5 percent to 9.3 months. And we saw Days on Market increase 8.1 percent to 133 days.
While Pending Sales were down 39.3 percent to 416, home prices forged onward, which is good news for sellers. The Median Sales Price increased 6.7 percent to $154,450. The Average Sales Price increased to $185,145, which reflects a 5.4 percent increase from April’s numbers. Even better news regarding prices is that both the median and average sales price are up nearly 8 percent from a year ago.
We’ve had a mixed bag of economic news lately. As expected, national GDP contracted slightly during Q1 2014, which most economists attribute to impermanent factors like the harsh winter. We’ve now had more than four straight years of monthly private sector job growth. It hasn’t been extraordinary growth, but it sure beats mass layoffs. Buoyed by an improving sales mix, home prices continue their ascent despite erratic demand indicators. More inventory, more high-skilled job growth, and less economic and political uncertainty are still top priorities.
The Greater Chattanooga Association of Realtors, a regional organization with more than 1,400 members, is one of more than 1,800 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.