By Vicki Trapp, AHWD, ASP, CRS, GRI, SRES, SRS, President
Greater Chattanooga Association of REALTORS®
It’s often been said that March “comes in like a lion, and goes out like a lamb”. While some might be able to make a case for the truth of that statement when it comes to our recent meteorological events, the Chattanooga area housing market was a mixed bag, at best. Assuming that the worst of the bad weather is very likely behind us, local REALTORS® are looking for some better days in the very near future.
Along with an uptick in consumer confidence, growth in America’s Gross Domestic Product has been revised upwards to 2.6 percent by the U.S. Commerce Department. Consumer spending has risen and claims for unemployment benefits have decreased. These are all tremendously positive signs, as it always follows that positive economic health fuels housing market growth.
During this year's spring refresh, seller activity is the first item on the watch list. Not surprisingly, lower inventories have been a national headline grabber, and many observers are eager to see if this is the year that brings a bevy of new properties to market for “ready-to-purchase” buyers. Investor activity and cash purchases should be monitored, as well, along with any increases in new construction.
Although interest rates are up from their all-time lows, borrowing costs are still remarkably affordable, so consumers currently on the fence might want to consider acting on a planned new home before any surge in rates makes borrowing less attractive. It's cheaper to own than to rent in most of the country. New Listings in the Chattanooga region increased 11.6 percent to 1,208, though pending Sales were down 40.6 percent to 397. Inventory levels shrank 2.4 percent to 4,912 units available on the market.
Prices remained determined. On a positive note for sellers, the Median Sales Price increased 3.8 percent to $135,000. Average Days-on-Market were up 6.3 percent to 135 days. Absorption rates slowed as the Supply of Inventory was up 1.2 percent to 8.7 months.
Consumers are in better shape for the current financial landscape, just in time for the upcoming primary home-buying season. Employed, confident people with rising incomes tend to purchase real property. As we’ve emphasized so many times over the years, it’s all about jobs, jobs, jobs.
Our own area is one of those places in the American landscape that will witness three election cycles this year. Voters will choose local, State, and U.S. leaders during the May, August, and November elections that will shape the economic roadmap we will take into the future. Our Association urges everyone to participate, and assume accountability for our own best outcomes.