As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable.
A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There’s little to indicate that the low inventory situation will resolve anytime soon.
New Listings in the Chattanooga region were up slightly from September and year-to-date decreased 1.4 percent to 1,085. Pending Sales were down slightly from September and year-to-date up 2.0 percent to 709.
Prices continued to gain traction. The Median Sales Price increased 14.0 percent to $171,000. Average Sales price increased 14.3 percent to $200,374.
Days on Market was down 15.1 percent to 62 days. Sellers were encouraged as Months Supply of Inventory was down 25.4 percent to 4.4 months. Inventory levels shrank 19.5 percent to 3,571 units.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.
The Greater Chattanooga Association of Realtors is The Voice of Real Estate in Greater Chattanooga. The Association is a regional organization with more than 1,700 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.