Chattanooga Real Estate Blog

The local real estate market witnessed a slight, drop in December in the number of homes sold, according to data released by the Multiple Listing Service (MLS) of the Chattanooga Association of REALTORS®. In December of 2009, Southeast Tennessee and the Northwest Georgia area saw the sale of 474 residential units, a 6.5% decrease compared to the previous month’s sales, but a marked improvement over 2008, showing a 9.7% increase over the same monthly period of a year ago.

For the month of December, the local median home price was $128,250. That represents a decrease of 5.2% from the same period one year earlier and a small decrease of 1.3% from the median price reported the previous month. REALTORS® are quick to point out that it continues to represent a continuing trend of real affordability, and that price sensitive buyers should strongly consider purchasing now, and avoiding the inevitable increases in an improving market.

The average number of days on the market showed a slight increase, attributed to the busy period of
any holiday season. From recent highs (above 130 days), the average is now showing 126 days, which
has not been interpreted as showing any significant trend.

FHA has now announced more tightening of underwriting guidelines.

• Up front mortgage insurance premium increased to 2.25
• 10% down payment for buyers with a FICO of less than 580.
• Seller concessions reduced from 6% to 3%

No specific date on when these changes go into effect, just sometime in the spring.  Stay tuned!