Thursday, July 12, 2018
- by Geoff Ramsey, president, Greater Chattanooga Realtors
Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.
New Listings in the Chattanooga region increased 8.7 percent to 1,388. Pending Sales were up 9 percent to 932. Inventory levels shrank 17.7 percent to 2,756 units.
Prices continued to gain traction. The Median Sales Price increased to 11.7 percent to $201,000. Days on Market was down 27.9 percent to 44 days. Sellers were encouraged as Months Supply of Inventory was down 19.5 percent to 3.3 months.
Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but new listings may finish the summer on ...