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Editorial


Front Page - Friday, January 15, 2021

December used to be slow month




Typically, December is one of the slowest months of the year for real estate, but we saw strong buyer demand across most market segments. Near record-low interest rates spurred the demand and swift pace in the face of a new wave of COVID infections and a softening jobs market.

These low mortgage rates and the strong buyer demand in most market segments show that the housing market of early 2021 looks to continue the trends we saw in the second half of 2020. Low inventory and multiple offers on in-demand properties and market segments are likely to remain common.

At the same time, the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance.

The climate further demonstrates the importance of utilizing a Realtor and their services. In such a competitive market where multiple offers are commonplace, Realtors have the knowledge to help guide their clients.

Here’s a look at some December numbers:

• New Listings in the Chattanooga region increased 5.1% to 748.

• Pending Sales increased 25.8% to 835, which is a huge amount compared to 664 the previous December.

• Inventory levels continued to shrink by 53.1% to 1,197 units. For comparison, there were 2,552 homes for sale in December 2019. This really puts the inventory crunch in perspective.

• Prices continued to gain traction with the median sales price increasing 11.3% to $239,250, compared to $215,000 in December 2019.

• Days on Market was down 38% to 31 days. As a reference point, in December 2019, the average Days on Market was 50. This statistic shows how the low inventory and the fast market is helping drive prices upward.

• Sellers were encouraged as Months Supply of Inventory decreased 57.1% to 1.2 months. This smaller inventory is creating more multiple-offer scenarios.

Another interesting statistic is the “average percent of original list price received.” Put simply, this is the percentage of the original listing price that a home ultimately sells for, before any price reductions.

In December, homes sold (on average) for 98% of their original listing. A year earlier, that figure was 95.8%.

Clearly working with a Realtor is helping sellers get the most competitive offers, which helps clients get the most for their property.

Using a Realtor is your best bet for navigating the current housing market. We have the latest tools and access to market data to serve the homebuying 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 2,400 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 service Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. Information: visit www.gcar.net or call 423.698.8001.