Monday, April 14, 2014

This Month's Local Market Update

MARCH 2014

     During this year's spring refresh, seller activity is the first item on the watch list. Low inventory has been a national headline grabber, and many are eager to see if this is the year that brings a bevy of new properties to market for ready-to-buyers. Investor activity and cash purchases should be monitored, as well, along with any increases in new construction. And although interest rates are up from their all time lows, borrowing costs are still remarkably affordable. 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. Pending Sales were down 40.6 percent to 397. Inventory levels shrank 2.4 percent to 4,912 units. 

     Prices remained undetermined. the Median Sales Price increased 3.8 percent to $135,000. Days on Market was up 6.3 percent to 135 days. Absorption rates slowed as Months 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 primary home buying season. Along with an uptick in consumer confidence, GDP growth was revised up to 2.6 percent by the Commerce Department. Consumer spending has risen and claims for unemployment benefits have decreased. Economic health fuels housing market growth. Employed confident people with rising incomes tend to purchase real property. 

(source: Greater Chattanooga Association of Realtors