Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline.
This is not uncommon in a balanced market, but it’s been so long since we’ve seen one that we’re watching it with perhaps too much trepidation. Metrics to watch include Inventory and Prices, but also Days on Market, Months’ Supply, and Percent of List Price Received at Sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand.
New Listings in the Chattanooga region decreased 5.9 percent to 968. Pending Sales were down 38.3 percent to 420. Inventory levels shrank 2.4 percent to 5,234 units.
Prices continued to gain traction. The Median Sales Price increased 3.2 percent to $148,000. Days on Market was up 6.6 percent to 129 days. Buyers felt empowered as Months Supply of Inventory was up 1.1 percent to 9.1 months.
Sustained job growth, lower mortgage rates, and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it’s encouraging to see second quarter GDP growth revised upward to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues.
This past week shed additional light on the market recovery. Chattanooga was the host city for the Tennessee Association of Realtors’ (TAR) annual convention held September 17-19. Nearly 50 Realtors from the Greater Chattanooga market joined a few hundred Realtors from across Tennessee to participate in the convention. In the hallways, the buzz reflected this same sentiment – the recovery continues and Realtors are busy. This is positive news for buyers and sellers.
In addition to talk of the market, Realtors participated in classes, motivational sessions, and networking events. The Association, whether at the local, state, or national level, is at its strongest when members are engaged. This past week, Realtors came together to discuss issues impacting all property owners. Among the conversation topics were proposed rules by the Tennessee Real Estate Commission. These rules are ones to which all licensees must adhere and are intended to protect and promote the consumer in real estate transactions. In working with the Commission, Realtors strive to strengthen the real estate profession and raise the standards by which all licensees conduct themselves.
I’ll close this week’s column on a proud note for our local Association. Some of our own Realtors played key roles during the convention. Jennifer Grayson served as Chairman of the 2014 Convention Committee and did an excellent job spearheading those effort to put together and fun and educational experience. And during Friday’s installation ceremony, we watched Randy Durham take the oath of office to serve as TAR’s 2015 President-Elect. Thank you to Jennifer, Randy, and all who participated in the convention to make it a successful one. Your engagement at all levels of the Association makes a difference for all Realtors.
The Greater Chattanooga Association of Realtors is a regional organization with more than 1,400 members, 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 is “The Voice of Real Estate in Greater Chattanooga,” and services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. For more information, visit www.gcar.net.