By Nathan Walldorf, ABR, GREEN, GRI, SFR, e-Pro
President, Greater Chattanooga Association of REALTORS®
Each year, the natural ending point of December gives way to the optimism of January. This is particularly pronounced when the economy is strong and economists across the land are predicting increases in both prices and home sales. Granted, there has been some measured language surrounding the positive thinking. Although we are looking forward to a good year in real estate, it should be sure and steady activity instead of the jolt of winning the lottery.
New Listings in the Chattanooga region decreased 2.6 percent to 1,063. Yet, the twelve-month average held steady at 1,169, which is an 8.8 percent increase. Pending Sales were down 1.1 percent to 693 for January. Yet, again, the twelve-month average was positive – a 13.2 percent increase to 762. January’s Closed sales were up 11.5 percent to 581. Inventory levels shrank 22.1 percent to 3,625 units.
Prices continued to gain traction. The Median Sales Price increased 5.8 percent to $144,612, which pushed the twelve-month average by 6.3 percent to $151,455. The Average Sales Price increased 4.5 percent to $181,437, which bumped the twelve-month average by 8 percent to $182,455.
Days on Market was down 36.1 percent to 69 days. Sellers were encouraged as Months Supply of Inventory was down 30.4 percent to 4.8 months.
Other than the change of another month and year, little else is changed in residential real estate both nationally and locally. Unemployment is solidly about the same, housing metric trends are running about the same for now and the sunny outlook is still at about high noon. Same is the sound of 2016, so get curled up and comfy with the song, because we are likely to sing it a lot this year.