By Nathan Walldorf, ABR, GREEN, GRI, SFR, e-Pro
President, Greater Chattanooga Association of REALTORS®
The primary story, both nationally and in local submarkets, is a dwindling months’ supply of inventory. The cure, of course, is more inventory. However, new construction has been lagging during this opportune moment, and sellers of existing homes are not yet hitting the market in droves. The National Association of REALTORS® reported on March 11th that, "91.5 percent – of all properties with a mortgage had equity, according to CoreLogic’s most recent analysis." That's good news if you have been thinking about selling your house. You probably have equity enough in the house again to sell it.
The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.
New Listings in the Chattanooga region increased 31.2 percent to 1,140. Pending Sales were up 10.6 percent to 846. Inventory levels shrank 17.4 percent to 3,576 units.
Prices continued to gain traction. The Median Sales Price increased 12.4 percent to $153,750. The Average Sales Price increased 14.7 percent to $179,504.
Days on Market was down 22.2 percent to 77 days. Sellers were encouraged as Months Supply of Inventory was down 25.4 percent to 4.7 months.
National housing starts were up by 10.8 percent at the end of 2015 when compared to 2014, and the unemployment rate is holding low and steady at or near 4.9 percent. Meanwhile, mortgage rates continue to astound below 4.0 percent and we have witnessed an unprecedented 70 consecutive months of private-sector job growth. As consumers navigate their options, competition for the best available properties should be profound, especially if the market remains hobbled by a lack of supply.