In July, the U.S. economic expansion that began in June 2009 became the longest in the nation’s history. That run marked 121 straight months of gross domestic product growth and surpassed the 120-month expansion from 1991 to 2001.
The average rate of growth during this expansion has been a milder 2.3 % per year compared to 3.6 % during the 1990s. Although the economy should continue to perform well for the rest of 2019, some economists see a mild recession on the horizon.
During the record-setting 121-month economic expansion, the unemployment rate has dropped from 10 percent in 2009 to 3.7%. Yet many consumers continue to struggle financially.
Low mortgage interest rates have helped offset low housing affordability; however, high home prices are outpacing median household income growth. In a move to stoke continued economic prosperity, the Federal Reserve reduced the benchmark interest rate by a quarter point to about 2.25%, marking the first reduction in more than a decade.
The Greater Chattanooga area market remains hot – which the increase in inventory and homes sold reflect.
For our area, New Listings in the Chattanooga region increased 3.3% to 1,300. Pending Sales were up 15.2% to 1,068. Inventory levels shrank 8.4% to 2,770 units.
Prices continued to gain traction. The Median Sales Price increased 12.7% to $210,250. Days on Market was up 5% to 42 days. Sellers were encouraged as Months Supply of Inventory was down 13.9% to 3.1 months.
Markets may change but Realtors’ commitment to serving our clients doesn’t. Navigating a market that can shift quickly is just one reason why consulting a Realtor is important. We keep a watchful eye on trends locally and nationally that might affect our clients and community. That’s Who We R.