Chattanooga Real Estate Blog

4th Quarter home sales show a gain over 2008 but lag behind 3rd quarter 2009.

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.

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.

The local real estate market remained inconsistent, with underperformance as its only constant, 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 September of this year, Southeast Tennessee and the Northwest Georgia area saw the sale of 507 residential units, a 4% decrease compared to the previous month’s sales, in a retrenchment from previous growth trends observed this year. Earlier statistics had shown three consecutive months – May, June, and July – of small, yet steady, gains in the market.

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.

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.