Summer is starting to wind down, and schools are beginning in their different capacities, but don’t think the housing market is slowing. COVID-19 has certainly impacted the national economy, but it hasn’t to this point negatively impacted the housing market.
Although unemployment claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed nationally each week. Thirty-one million were claiming benefits in all programs as of early July, compared to fewer than 2 million in July 2019.
Despite this significant economic impact, homebuyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market.
Healthy buyer demand coupled with low supply continues to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations are a frequent experience in many markets. But with the inventory of homes for sale still low, this fast and competitive market for buyers doesn’t show signs of braking.
Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19, and housing inventory will continue to be lower than it has been historically until sellers regain confidence.
In the greater Chattanooga market, prices continued to gain traction. The median sales price increased 11.9% to $235,000.
Days on market was up 2.4% to 43 days. While the increase is only slight, it is an indication of the time of year. It’s also a reflection of the low inventory, which is driving up demand.
Sellers were encouraged as months supply of inventory was down 51.4% to 1.7 months.
New listings in the Chattanooga region decreased 6.8% to 1,218. Locally, pending sales were up 22.2% to 1,239, while inventory levels shrank 46.9% to 1,623 units.
What does all this information mean? It means there are fewer houses on the market now, and if you use a Realtor’s expertise when listing your house for sale, you might be in a very good position. Realtors have the latest tools to serve the home buying needs of our 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 300 local boards and associations of Realtors nationwide that comprise the National Association of Realtors.
Greater Chattanooga 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 or call 423 698-8001.