Home prices were up during summer across the nation in year-over-year comparisons. With the economy on full mend, Federal Reserve Chair Janet Yellen has predicted a fine-tuning of monetary policy before the year ends.
In tandem with the improved economy, the unemployment rate for July 2015 remained at 5.3 percent for the second month in a row. It is widely believed that interest rates will go up before the year is over. Generally, this does not happen without careful consideration for the impact such a move will have on residential real estate.
New Listings in the Chattanooga region increased 17.0 percent to 1,240, which remains above the 12-month average. Year-to-date, New Listings are up nine percent to 10,102.
Pending Sales were up 15.5 percent to 821, which also is well above the 12-month average and an 18.8 percent increased year-to-date.
Closed Sales were up 14.1 percent to 833, with a year-to-date comparison showing a 13.4 percent increase to 5,908.
Inventory levels shrank 32.6 percent to 4,380 units, which drops the Months Supply of Inventory down 41.6 percent to 5.9 months.
Year-to-date, prices continue to gain traction. The Median Sales Price increased 12.1 percent to $157,950 – the second highest monthly Median Sales Price we’ve seen all year. The Average Sales Price was up 13.2 percent to $185,380.
Days on Market was down 30.3 percent to 76 days. Percent of Original List Price Received was up two percent, showing that an average of all properties sold in the month brought 94.6 percent of the original list price.
Statistics released by the U.S. Census Bureau and the Department of Housing and Urban Development indicate that privately-owned housing starts in July 2015 rose 10.1 percent compared to last year to the highest level the market has seen since October 2007. This bodes well for the eventual landing of a flock of potential buyers currently holding in a rental pattern. As ideal summer weather diverges toward autumn, we will begin to see some seasonal relaxation, but the market should still look positive when compared to last year.
The Greater Chattanooga Association of Realtors is “The Voice of Real Estate in Greater Chattanooga.” The Association is a regional organization with more than 1,500 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.