By Geoff Ramsey, CRS, GRI
President, Greater Chattanooga Realtors
Greater Chattanooga’s housing market continued to be strong and competitive through January 2018. With inventory of home for sale at an all-time low, median home sales prices increase more than 10 percent from January 2017. Even with the stock market being volatile in the past couple of weeks, not much has changed from last year in terms of a healthy housing market and cautiously optimistic economists.
Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home buying activity was extremely competitive. Yet, there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt to take advantage of rising prices, expect buyers to be more selective.
New listings in the Chattanooga region decreased 7.6 percent to 942. Pending Sales were down 3.3 percent to 743. Inventory shrank 27.2 percent to 2,446 units.
In January, prices continued to gain traction as they did last year. For the second month in a row, the Median Sales Price increased (up 10.9 percent to $177,250) and Days on Market increase (up 6.3 percent to 67 days). Sellers were encouraged as Months Supply Inventory was down 26.8 percent to 3.0 months.
Whatever external forces are placed upon residential real estate markets across the country – whether they are related to tax legislation, mortgage rates, employment situation changes, new family formulations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country. New sales are not necessarily following that trend, but monthly increases are expected until at least late summer.
2018 is expected to be another stellar year the Chattanooga region’s housing market. Whether you’re looking to buy, sell, or both, connect with a Realtor on www.gcar.net to have access to the best resources at your fingertips during a competitive housing market.
Greater Chattanooga Realtors® is The Voice of Real Estate in Greater Chattanooga. A regional organization with more than 2,000 members, Greater Chattanooga Realtors is one of some 1,300 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. For more information, visit www.gcar.net or call 423.698.8001.