By Mark Blazek, President
Greater Chattanooga Association of REALTORS®
November was largely another encouraging month for residential real estate. Our attention has shifted from multiyear high prices and sales volumes to seller activity, inventory levels and building permits.
Before jumping into the November numbers, let’s consider the calendar, which sometimes has just as profound an effect on housing data as supply and demand. The 2013 Thanksgiving holiday was a week later than in 2012, causing some peculiar shifts in activity. As families gathered together, fewer house hunters were scheduling showings and writing offers. Thus, our month-to-month activity moderated somewhat, while our year-over-year comparisons remain strong.
For November, New Listings in the Chattanooga region decreased 14.9 percent to 697. Pending Sales were down 33.8 percent to 337. Inventory levels shrank 3.1 percent to 4,909 units.
Prices were a tad soft with the Median Sales Price decreasing 6.4 percent to $134,750. Days on Market was down 1.5 percent to 128 days. Absorption rates improved as Months Supply of Inventory was down 5.6 percent to 8.5 months.
Recent economic and jobs data have surprised to the upside by exceeding expectations. This likely keeps the new Federal Reserve leadership on track for March 2014 tapering. Non-farm payrolls grew by 204,000 jobs in October, outperforming Wall Street expectations. In another bullish sign, August payrolls were revised upward to a 238,000 job gain – positive momentum that should support housing recovery. Just in time for the holidays.