By Vicki Trapp, AHWD, ASP, CRS, GRI, SRES, SRS, President
Greater Chattanooga Association of REALTORS®
Traditionally, Spring and Summer are the peak times for real estate transactions. Yet, don’t let the upcoming start of the 2014-2015 school year cause you to sit tight until next year. Numerous factors go into when is the best time to enter the real estate market. While some may choose to be in their new home in time to accommodate school-aged children starting at a new school, that concern is not the case for all sellers and buyers.
According to the NAR’s 2013 Profile of Home Buyers and Sellers, the median age of first-time buyers is 31, which certainly is an age potentially to have children in the household. However, not all thirty-something’s are married and/or have children. And let’s consider repeat buyers, whose typical age if 52 years – an age where it is a mixed bag of whether children remain in the home. Another related statistic is that last year fourteen percent of buyers purchased a home for a multi-generational household – a home that had adult siblings, adult children over the age of 18, parents, and/or grandparents in the household. So while the school calendar does come into play for some consumers, that factor is not applicable to many sellers and buyers. Real estate is a 365-days-a-year opportunity.
In its current public awareness campaign the National Association of REALTORS® (NAR) encourages, “If you’re thinking about selling your home, don’t hesitate. The combination of low interest rates for home buyers and a shortage of homes for sale in many areas of the country indicate that now may be the right time to sell.” That sentiment could not ring more true for Greater Chattanooga.
For the second consecutive week, the 30-year fixed rate mortgage just fell below four percent, and predictions indicate these rates will not remain this low. By year’s end, we anticipate rates to rise above five percent, which still is an incredible opportunity for buyers seeking to enter the market.
Locally, we are experiencing improvement when it comes to available inventory. Currently, our months supply of inventory is at 9.5 percent, which is up 4.4 percent year-to-date. After eight months of a struggling inventory, we are on the right path. Since March of this year, we have seen a slight growth in inventory each month. Yet, we still are not close to the 14 months of supply we enjoyed in mid-2009 and early 2011. Buyers seek to take advantage of the low rate, yet seek out more inventory before making a purchasing decision. And sellers should heed this opportunity to enter the market.
Just as everyone’s circumstances are different, every market is different. When you’re ready, be sure to contact a real estate agent who’s a REALTOR®. REALTORS® have up-to-date information on market conditions in your area and can show you options that best fit your situation.