By Mark Blazek, President
Greater Chattanooga Association of REALTORS®
The economy continues to snail forward. The government shutdown had a modest impact on borrowing – mostly centered on USDA and VA borrowers. Consumer confidence is central to ongoing recovery, and confidence was hindered by the shutdown. Consumer spending accounts for roughly 70 percent of U.S. economic activity and impacts the likelihood for big-ticket purchases like homes and cars. Future shutdowns are unwelcome.
Now that the baton is in grasp of the final quarter of our annual relay, it's a good time to look back and reflect. This year has been spectacular for residential real estate. Robust gains in sales and prices were felt in many markets. More homes sold in less time for closer to asking price. While consumers have felt empowered by low prices and interest rates, sellers are starting to regain their footing. Seller confidence is crucial to refilled inventory bins – which are still relatively sparse.
New Listings in the Chattanooga region were up 15.2 percent to 1,028. Inventory shrank 0.2 percent to 5,144 units.
Closed sales were down 2.3 percent for the month of October, but we still are trending a positive pace of 9.1 percent for the year. So far we have closed 6,127 units year-to-date, compared to 5,616 in 2012 – that is a 9.1 percent increase for the year.
Prices were still a bit soft as the Average Sales Price was down 6.3% for October. But for the year, we still are up 2.6 percent since January – that is $168,611 compared to $164,347 year-to-date.
Days on Market decreased 6.6 percent to 113 days. Months Supply of Inventory was down 3.3 percent to 8.9 months, indicating that demand increased relative to supply. This is a positive sign for sellers, who now have a better chance getting their original asking price from potential buyers.
Fewer people are out scouting homes now that they are scouting the perfect bird for their Thanksgiving feast, but overall markets still show signs of stable recovery. By and large, expect the end of 2013 to look just as juicy and golden as your bird is soon to be. Please have a safe holiday and happy Thanksgiving.