The U.S. economy has been pretty even so far this year. Usually when new figures are released, they paint a pretty picture worthy of putting above the fireplace in that purchased new home. Recently, some numbers for the first quarter were adjusted to show a slight contraction in the economy.
The initial response from Wall Street was unfavorable, but the correction itself is truly a mere blip. Nobody is predicting that the market will take a sudden turn. And in taking a look at our local market data, that certainly seems to be the case.
In May, New Listings in Greater Chattanooga increased 10.5 percent to 1,399. Year-to-date, this same category is up 7.1 percent. Pending Sales also were up in May by 18.5 percent to 902, which support the 24.1 percent increase year-to-date.
Inventory levels shrank 29.6 percent to 4,326 units, which further shortened the Months Supply of Inventory by 38.8 percent to 6.0 months. However, sellers remain encouraged, as evidenced by the above-referenced New Listing stats. In short, now is a great time for sellers to enter the market.
Another positive for sellers is a decrease in Days on Market, which was down 31.6 percent to 78 days. Yet, buyers should not be discouraged or overlook the previously mentioned 10.5 percent increase in New Listings. It’s important to note that while May’s Month Supply of Inventory experienced a decline, Greater Chattanooga’s Days on Market
is only down 18.3 percent year-to-date.