Want the 4-1-1 on how the Chattanooga market is shaping up for this spring? We’ve got you covered:
- New Listings -6.5% (1,248)
- Closed Sales/month +5.7% (860)
- Days on Market (DOM) -4.1% (70)
- Median Price +19.2% ($174k)*
- Inventory of homes -23.1% (2,988)
- Average Price +14.2% ($206,837)
- Months supply of inventory -28% (3.6 months)**
* This Median Price increase is the largest leap for year over year that we have EVER seen.
** If nothing new came on the market, it would take our current inventory 3.6 months to sell and we’d have nothing left.
WHAT DOES THIS MEAN FOR ME?
- AFFORDABILITY: Interest rates are still very low, despite the Fed’s adjustment. This means you can either buy more house or have a shorter term loan.
- “Rare Air” situation: despite low GDP (3%), unemployment is still low (4.9%) and income growth is high (5%), and adjusted for inflation. With income and employment high and affordability outlook good, there are LOTS OF BUYERS, which means they are COMPETING for the best homes available.
- Local home value APPRECIATION is high
- NEW CONSTRUCTION starts are way up. Need to buy in order to sell? New builds expand your options, and we regularly negotiate terms that leave sellers in their homes until they buy another home.
As we look at the history of real estate market trends, we see an ebb and flow from a buyers market into a sellers market and back every 7 years. This last cycle has been a 10 year sellers’ cycle because of the market correction we had in 2008. We are most certainly at the top of the market for sellers, and though home prices are increasing, rates are still very low, giving buyers more flexibility.
With GDP being below 4% (which is where our economists like to see it for real growth), we have to ask ourselves where is the next big “thing,” the next innovation or market that will launch us forward. Artificial intelligence tech seems to be a likely candidate for the next innovation trend. Chattanooga has been called the Silicon Valley of the South, attracting loads of start ups each year in large part due to our internet capabilites (thank you, EPB), our relatively low cost of living, and our state being less regulatory.
Now is the time to buy that investment property you’ve been wanting as a nest egg to boost the kids’ college fund. Now is the time to sell that investment property you bought several years ago for the kids’ college fund. Now is the time to make the move that is right for your family and stage in life.
I’d love to sit down with you and talk about how you can most benefit from the current market outlook. It’s my great joy to help you discover creative ways to make your real estate dream a reality – be that investment properties, upgrading, downsizing, or building from the ground up!
The Chattanooga Roots Property Team