The local real estate market showed positive signs of recovery, according to data released by the Multiple Listing Service (MLS) of the Chattanooga Association of Realtors. In the second three month period of 2010, the Southeast Tennessee and Northwest Georgia area saw the sale of 1,919 residential units, a 30.5% increase over the same quarter’s sales in 2009, and an advance of 47% over the April through June sales of this year. However, local experts are advising care about the interpretation of those statistics.

“While I continue to believe that the worst of this terrible recession is behind us, I also think that there are other very serious concerns that must be addressed, including unemployment and persistent difficulties in the lending market” said, Randy Durham, president of the Chattanooga Association of Realtors. “The core confidence of those who are potential homebuyers has been badly shaken, and no amount of positive statistics can substitute for the public’s faith in the ‘system’ working for them, and meeting their expectations.”

Chattanooga MLS President Bobby Teems said, “The Homebuyer’s tax credit and the extension on the closing date made for a winning combination for everyone, but now, it’s over. Without a doubt, we expect a sharp drop-off in sales as the year progresses.”

He added, “Common sense tells us that there will have to be a break in the cycle for us to assess an enduring revival. Many companies are now holding on to large cash reserves, and not hiring – or rehiring – workers that were laid off. Without that sign of renewed confidence, the jobs and lending picture will continue to be difficult to read.”

Mr. Durham added, “Looking back on historical metrics is always useful, but how those numbers might relate to future performance, and knowing where the market will be in six to twelve months is always problematical, even for the most experienced economic forecasters.”

Median price figures for the period witnessed a negligible decrease to $129,500 – a drop of 0.4% from the 2nd Quarter of 2009, and showed a gain of 7.9% over the 1st Quarter of this year. While a positive sign, in terms of affordability, the increase over the previous quarter is also surprising in light of the reported increases in foreclosures over the past 12 months.

The index indicating the number of days on the market has shown quarterly decreases over last year, decreasing by 4 days during the same period of 2009 –and a full 10 days from the 1st Quarter of 2010.