The current projections for residential mortgage interest rates have shown little change within the past few home sales reporting periods.

For the month of February, the local median home price was $121,750. That represents a decrease of 3.0% from the same period one year earlier and a slight gain of 1.9% from the median price reported the previous month. The adjusted median price remains one of the more attractive for U.S. regions of this size.

In terms of the number of average days on the local market, February 2010 saw a small increase over figures from the same month in 2009, but down somewhat from the previous month of January of 2010. Those swings do not seem to portend anything more extraordinary than the variety of factors that comprise the overall operational vagaries of a recovering market system.

A review of the historical sales activities during the month of February over the past ten years shows a remarkable consistency, with the often stated sole exception of the “boom” years of the past mid-decade.

In the fourth three month period of the year just ended, the Southeast Tennessee and Northwest Georgia area saw the sale of 1,527 residential units, a 19.8% increase over the same quarter’s sales in 2008, but a drop of 6.5% over the July through September sales of 2009.

Median price figures for the period witnessed a decrease to $128,500 – a drop of 4.8% from the 4th Quarter of 2008 and a statistically negligible decline of 1.2% from the previous quarter. While a positive sign, in terms of affordability, the price drop is often interpreted by some authorities as a sign of a continuing sluggish economic outlook. However, the index indicating the number of days on the market has remained remarkably consistent – from 120 a year ago to 120 in the 4th Quarter of 2009 – and only 5 days less than the 3rd Quarter.

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.

For the month of October, the local median home price was $127,000. That represents a decrease of 9.3% from the same period one year earlier and a small decrease of 2.2% from the median price reported the previous month.  However, it continues to represent a continuing trend of real affordability, and the adjusted median price remains one of the more attractive for U.S. regions of this size.

In terms of the number of average days on the local market, October 2009 saw a negligible increase over figures from the same month in 2008, and a pronounced drop from the previous month of September, 2009. Many economists attribute this pattern to a continuingly slow easing of pressures in the financial markets, returning to their previous averages and are now confident of more consistency over the next few quarters.

Year to date number of homes sold and a three year comparison:

Year to date number of homes sold:

Three year comparison:

For the month of September, the local median home price was $129,900. That represents a decrease of 6.2% from the same period one year earlier and a statistically negligible decrease from the median price reported the previous month. However, it continues to represent a continuing trend of real affordability, the adjusted median price remains one of the more attractive for U.S. regions of this size.

With the population aging and fewer young people to take the place of baby boomers, the demand for housing may slow for years to come, keeping home values from increasing as they have done since World War II, according to at least one well-known national expert.

In terms of the number of average days on the local market, September 2009 saw a small increase over figures from the same month in 2008, and from the previous month of August 2009. Many economists attribute this pattern to a continuingly slow easing of pressures in the financial markets, returning to their previous averages and are hopeful of more consistency over the next few quarters.

Demonstrating again the recovery power of the Chattanooga marketplace, the July statistics are showing that, despite the nagging persistence of the nation’s economic challenges and disappointing unemployment statistics on a national level, real estate continues to be the stalwart leader in the U.S. economic recovery picture.

It has long been an article of faith among real estate professionals that affordability is a key indicator in both the pace and depth of the market dynamics shaping home sales. In the Greater Chattanooga and Northwest Georgia area, this can be seen in the local median home price, which is the price that half of all units sell for more and half sell for less. For the month of July, the local median home price was $131,000. That represents a decrease of 7.4% from the same period one year earlier and a 3.7% decrease from the median price reported last month. While it represents a continuing trend of real affordability, the adjusted median price also speaks well for the area’s ability to attract new residents who now see the Greater Chattanooga Area as a multi-sided success story in new manufacturing job opportunities, a place of cultural renaissance, and one of the U.S.’s most attractive places to live and work.

In terms of the number of average days on the market, July 2009 remained consistent with figures from 2008, while seeing a dramatic decrease from the previous month of June 2009. Many experts attribute this to a slow and gradual easing of pressures in the financial markets. Though credit often remains tight for even the most qualified of buyers, it is believed that lender confidence will increase, allowing for greater access to credit. Authorities see the number of days on market now returning to their previous averages and predict more consistency over the next few quarters.

Average Days on Market

The Chattanooga Association of REALTORS^®, the region’s premier voice for real estate, is made up of real estate professionals engaged in every aspect of real estate throughout Southeast Tennessee and Northwest Georgia. Those interested in the region’s real estate market can visit www.RightTimeRightMarket.com, an informative Web site with up-to-date information about the state of the Northwest Georgia and Southeast Tennessee real estate market while also offering helpful tips on buying or selling a home, information on renting versus owning a home, information on the temporary tax credit for first-time homebuyers, and area facts for those relocating or retiring to the greater Chattanooga area.  Reprinted and edited with permission.

Demonstrating again the recovery power of the Chattanooga marketplace, the June statistics are showing that, despite the continuance of the nation’s economic challenges and growing unemployment on a national level, real estate continues to be the stalwart leader in the U.S. economic recovery picture.

In terms of market affordability, a key indicator can be seen in the local median home price, which is the price that half of all units sell for more and half sell for less. For the month of June, the local median home price was $136,000. That represents a decrease of less than 3% from the same time one year earlier and a very encouraging 6.3% increase from the median price reported last month. While it represents a continuing trend of real affordability, the increased median price speaks to a much healthier economic picture. Additionally, it also speaks well for the area’s ability to attract new residents who continue to hesitate in making the home purchase decision in the less affordable areas of the country.

In terms of the number of average days on the market, June 2009 increased significantly from 2008, and also over the previous month of May 2009. Many mortgage experts attribute this to the continuing pressures in the financial markets as credit remains tight for even the most qualified of buyers. However, it is believed that, as lender confidence increases, allowing for greater access to credit, those authorities expect the number of days on market to return to their previous averages and then remain fairly consistent over a longer period of time.

Sales and Inventory History

Category – Residential

Sales and Inventory History

Category – Residential