Upon reviewing our June residential market statistics, you might think housing got off to a slow start this spring selling season. But don’t let appearances deceive you. As you dig into that spring soil, you begin to unearth differences in individual areas and segments of the Greater Chattanooga market.
Inventory is slowly rising in some areas. Activity is picking up in the upper price tiers. Rents continue to climb in most metros. And interest rates are generally lower than a year ago, to the surprise of some and the delight of others. Let’s take a detailed look at the monthly numbers:
In June, New Listings in the Chattanooga region increased 6.5 percent to 1,237. This increase is also reflected in our year-to-date increase of 3.8 percent.
Pending Sales were down 32.7 percent to 435. Despite the drop in Pending Sales, Prices were fairly stable. The Median Sales Price decreased slightly to $150,000, which shows a 1.6 percent decrease. However, year-to-date, the Median Sales Price is up 6.6 percent.
Average Sales Price improved this month by 1.5 percent to $182,382, which follows the upward year-to-date trend of a 6.8 percent increase. Another bit of encouraging news for sellers is that we’re seeing sales prices averaging to be 92.8 percent of the Original List Price. Prices are right, and buyers recognize they are getting a good value in Greater Chattanooga.
Another positive is the drop in Days on Market and the increase in Inventory. Sellers experienced less time on the market, with a decrease of 4.6 percent to 125 days. Buyers must act more quickly, yet buying them some time to make a purchase decision is the 4.4 percent increase in Months Supply of Inventory to 9.5 months. However, overall, inventory levels shrank 0.5 percent to 5,378 units.
Housing is one part of a broader ecosystem that thrives on a strong economy that churns out good jobs. First-quarter employment figures were adequate but not thrilling, but second-quarter numbers figure to be more positive. Access to mortgage capital remains an ongoing concern. As cash and investor deals fade, first-time buyers typically step to the forefront, but tight credit can and has been a real hurdle.
The Greater Chattanooga Association of Realtors, a regional organization with more than 1,400 members, is one of more than 1,800 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.