Market Report

Third Quarter 2016

The third quarter of 2016 has turned out to be one of the busiest in the area for real estate agents. Why? This is a two part answer.

 

 

There is always a surge of interest in buyers looking for homes once the school year has started. This makes sense considering life for those with children calms down after the initial flurry of back to school activity.

 

 

The second part of this is that  in the third quarter of 2016, the perfect storm of fewer homes and higher demand has created a market where sellers  are asking near top dollar in many areas of Chattanooga. Seller’s markets are often tricky because a home has to appraise for the amount asked in order for a lender to agree to the amount of a loan.  We are seeing homes that are at the median price or just above it, in multiple offer situations  in certain high demand areas of Chattanooga (North Chattanooga and St. Elmo for instance) but once the dust settles, some of these buyers are having to walk away from the sale.  Agents are scrambling to find another home in the same area, at the same price point for buyers.

 

The third quarter saw a decrease in average sale price of 9% from the second quarter average of $214,000 to just under $195,000.  However, this was an 8% increase from 2015’s average sale price, showing that while the market change  was typical from second to third quarter, Chattanooga’s economy has stayed steady. The average time on market in the month of September decreased by 25%, in part due to a shortage of mid priced homes on the market.  To shed a little clarity  on  the situation, the current inventory is 4 months, compared to 5.5 months in 2015 and 8 months in 2014, when agents began reporting a shortage. There is half the inventory available with a higher demand.

 

Homes in the $400,000 price range and higher remained steady in both sales and days on market from 2015-2016, showing that while median priced homes are more affordable, the change in the market is affecting higher priced homes.

 

The takeaway for the current market climate is that homes in the median range are still in demand. If you are considering selling your home, now is the time to do so. The selection is not large and buyers are still looking. Contact us today to learn more about  the Chattanooga and North Georgia real estate markets.

 

 

 

 

SECOND QUARTER 2016

The second quarter of 2016 is a distant memory and we are three weeks into the third quarter of the year. Time flies when you are having fun and our team has had fun working with clients from New York, Ohio and of course, the Chattanooga area in the past few weeks.  The second quarter continued strong in Chattanooga and North Georgia.

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The area has continued to experience rising sale prices with average homes sale price at just over $214,000 with the median home price of $165,000  up  13% from 2015’s $145,00. Demand is way up with supply at a much lower level than last year. Homes in the median sales price are down nearly 20%.

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Average days on market is also experiencing a big change from last year. In 2015, the  second quarter, which is the height of the selling season,  had an average of 92 days on market. The 2016 second quarter average is 61 which is a reduction of 33%. Homes are leaving the market in a matter of days instead of weeks. Fewer listings is creating and urgency among potential buyers and multi-offer situations are still ongoing.

one level home in Chattanooga

Nationally, the rate of home sales has increased an average of 1.5% each month in the second quarter and Chattanooga had an increase of 8% from 1st quarter to second quarter, showing that Chattanooga still has a strong economy.

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That being said, the predictions for the last two quarters of the year include a shift in the market. What does this mean? No one can predict certainty, but what the real estate profession has seen so far is this. Homes in higher price ranges are staying on the market longer and when they sell, are selling below what comparable homes sold for just 6 months prior. Home sales may slow as values increase but wages remain the same. Interest rates are rising,  and this could cause a slow down across all home prices, but especially in the luxury markets. Prudence in pricing is the important thing to remember when listing your home, whatever the price,point for the remainder of the year.

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Demand in Chattanooga is still high, especially for homes in the average price range. Millenials are buying as rental rates go up and interest rates still are relatively low. If you are considering selling your home or are in the market to purchase, we urge you to move now. Contact us at 423-432-2100 or 423-504-5006 to set up  your consultation with one of our qualified agents today. We are here to help.

 

FIRST QUARTER 2016

2016 is nearing the end of the first quarter and the housing market in Chattanooga is enjoying a surge. The national housing market dropped 7%  in February according to the National Association of Realtors, yet the Chattanooga market continued strong.

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The average sale price in 2016 compared to 2015 shows an increase of 5%, from $172,000 to $181,000. Total volume sales in Chattanooga were up 18 million dollars in February and nearly that in January.

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The average days on market dropped from an average of 110 days in January and February of 2015 to 75 in 2016. March projections for this year are poised show an even greater increase in both sales and home price.

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Our team, and many real estate agents across Chattanooga are experiencing multiple offer scenarios in numerous transactions. The demand for homes is rising in Chattanooga, in part because the economy has improved and banks are lending again, but also because Chattanooga is experiencing a population growth. These combined have created a demand for homes in the price ranges of $150,000 to $250,000.

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If you are considering selling your home, whether it is to move up from your first home or to downsize to your empty nest, we urge you consider doing so now, when the market is low on listings. Contact us today at info@chattanoogapropertyshop.com

 

SECOND QUARTER 2016

 

The second quarter of 2016 is a distant memory and we are three weeks into the third quarter of the year. Time flies when you are having fun and our team has had fun working with clients from New York, Ohio and of course, the Chattanooga area in the past few weeks.  The second quarter continued strong in Chattanooga and North Georgia.

20160627160857927425000000-o

The area has continued to experience rising sale prices with average homes sale price at just over $214,000 with the median home price of $165,000  up  13% from 2015’s $145,00. Demand is way up with supply at a much lower level than last year. Homes in the median sales price are down nearly 20%.

436_Bouton_Dr_01.jpg

Average days on market is also experiencing a big change from last year. In 2015, the  second quarter, which is the height of the selling season,  had an average of 92 days on market. The 2016 second quarter average is 61 which is a reduction of 33%. Homes are leaving the market in a matter of days instead of weeks. Fewer listings is creating and urgency among potential buyers and multi-offer situations are still ongoing.

one level home in Chattanooga

Nationally, the rate of home sales has increased an average of 1.5% each month in the second quarter and Chattanooga had an increase of 8% from 1st quarter to second quarter, showing that Chattanooga still has a strong economy.

20160714192759825052000000-o

That being said, the predictions for the last two quarters of the year include a shift in the market. What does this mean? No one can predict certainty, but what the real estate profession has seen so far is this. Homes in higher price ranges are staying on the market longer and when they sell, are selling below what comparable homes sold for just 6 months prior. Home sales may slow as values increase but wages remain the same. Interest rates are rising,  and this could cause a slow down across all home prices, but especially in the luxury markets. Prudence in pricing is the important thing to remember when listing your home, whatever the price,point for the remainder of the year.

20160412201708243792000000-o

Demand in Chattanooga is still high, especially for homes in the average price range. Millenials are buying as rental rates go up and interest rates still are relatively low. If you are considering selling your home or are in the market to purchase, we urge you to move now. Contact us at 423-432-2100 or 423-504-5006 to set up  your consultation with one of our qualified agents today. We are here to help.

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