Monday, January 19, 2015

December 2014 Market Report

     It has been another recovery year in 2014 but not the same as 2013. With a
broad pattern of rising prices and stable to improving inventory, the market has
shifted from being drastically undersupplied to approaching equilibrium. Price
gains are still positive but less robust than last year. The metrics to watch in
2015 include days on market, percent of list price received and absorption
rates, as these can offer deeper and more meaningful insights into the future
direction of housing.

     New Listings in the Chattanooga region increased 4.3 percent to 630. Pending
Sales were down 23.8 percent to 324. Inventory levels shrank 11.0 percent to
4,467 units.

     Prices continued to gain traction. The Median Sales Price increased 6.8 percent
to $149,250. Days on Market was down 5.2 percent to 128 days. Sellers were
encouraged as Months Supply of Inventory was down 10.7 percent to 7.5
months.

     Interest rates remained lower than anyone expected for the entire year. That
trend snowballed with solid and accelerating private job growth to empower
more consumers to buy homes. This coupled nicely on the governmental side
with mortgage debt forgiveness and interest deduction preservation. Student
loan debt, sluggish wage growth and a lack of sufficient mortgage liquidity still
remain hurdles to greater recovery.

Source: Greater Chattanooga Association of Realtors