The local real estate market continued its strong rebound from the disappointing sales earlier in the year according to statistics released today, in both number of homes sold and median price, according to data released by the Multiple Listing Service (MLS) of the Chattanooga Association of REALTORS®. In July of this year, Southeast Tennessee and the Northwest Georgia area saw the sale of 575 residential units, a 4% increase compared to the previous month’s sales, in the best monthly showing since August of 2008. For the first time in this calendar year, monthly sales have exceeded the same month’s sales of 2008, by .3%, a sign seen by many experts as a return to growth mode.
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.
