Jim Lea: Chattanooga Housing Market Shows Signs Of Strong Recovery

Monday, October 28, 2013 - by Jim Lea, Keller Williams Realty

After bottoming out in 2010, the Chattanooga housing market is now on the upswing. Four telling indicators of the real estate market are home values, days on market, months’ supply, and number of homes sold. Each of these indicators point to a surging market.  

Average home values in Chattanooga are 10 percent greater than they were at their worst in 2010 and almost identical to their levels in 2006. Some hyperlocal markets have even grown to greater than pre-recession levels, such as North Chattanooga, whose average home value is 20 percent greater than its pre-recession peak in 2006. 

Days on market is the time frame beginning when a house is listed up until the day it is sold at closing. While the average days on market, currently 132, is slowly descending from its crest at 136, 2013 is the first year since 2010 in which the listing to sales price ratio, the difference between a home’s current listing price and the accepted sales price, rose from 95 percent to 96 percent, indicating an impending shift from a buyer’s market to a seller’s market.

Months supply is a statistic used to determine how many active listings are currently available and how fast they will sell. Anything below a 6 month supply is considered to be a seller’s market by the National Association of Realtors. During the high summer season, the months’ supply dropped to 7.18 as compared to 12.78 in May of 2009 and from an all time high of 20.5 in January of 2009.  

The number of homes sold saw a significant rise from 2011 to 2012, a 17 percent increase, and this year’s numbers are likely to exceed 2012. However, the number of homes sold in 2012 is 30 percent less than in 2006 and it is not likely for 2013 to get much closer. It is not clear if this is an indicator that the market has plenty of room to grow or if it is has stabilized at a healthier level. 

Examined from all angles, the Chattanooga housing market has made a robust recovery and is poised for an energetic 2014, which will likely trend further towards a seller’s market.  

 (About Jim and Monique’s Team: Since 2005, Jim and Monique’s Team at Keller Williams has excelled in providing strong customer service, integrity in business, masterful knowledge of the local market, and competitive negotiations. So far this year, they have helped both buyers and sellers to close on more than 130 homes. For more information on the state of the Chattanooga housing market contact Jim Lea at 423-664-1610 or email jim@historicchatt.com.)


   


Herman Walldorf And Company Realtors To Serve As Salvation Army Drop-Off Location

The Salvation Army’s Christmas presence is back downtown after a lapse of more than 30 years of always being at the corner of 8th Street and Broad Street, the old American National Bank plaza.  It has moved 1.5 blocks to 109 E 8th St., Herman Walldorf & Company Realtors for an easy ground floor drop off.   Walldorf, the oldest family name in Chattanooga real estate, ... (click for more)

Planning Commission Agenda For Monday

Here is the Planning Commission agenda for Monday: I. Opening Comments & Announcements (Chairman) II. Subdivision Plats & Variances Variances SD 2016-066 North Chattanooga Land Company Lots 67A and 67B-Lot Frontage, Lot Size, and Existing Structure Setback-626 Spears Avenue (City of Chattanooga District 1, Hamilton County District 6) STAFF: Approve ... (click for more)

County Schools Prepare To Set Priorities For Next Round Of School Building Funding

County school board members are gearing up to set priorities for the next round of new school construction in Hamilton County. Lee McDade, assistant superintendent, said officials may know by the spring how much money will be available to build new schools or add on to existing ones - or do a combination of both. Board member Rhonda Thurman said a proposal to build a new Chattanooga ... (click for more)

Walker County Will No Longer Have Full-Time County Attorney Under Whitfield Tenure; Will Add Full-Time Communications Director

Incoming Walker County Sole Commissioner Shannon Whitfield said under his administration there will no longer be a full-time county attorney. "We will outsource this service on a fee basis," he said. Mr. Whitfield said he has begun interviewing attorneys who might be able to help out the county from time to time. Don Oliver has long been the county attorney for Walker County ... (click for more)

Vehicle Emissions Testing Causes More Pollution Than It Prevents - And Response

While a noble cause to make sure vehicles are operating efficiently with the minimum amount of pollutants, a simple analysis makes it somewhat evident the VET program in Chattanooga causes more pollution that it prevents.  Though I don't know how many vehicles are tested on an annual basis, if you assume an average round trip of 10 miles to the nearest testing station (five ... (click for more)

Roy Exum: Our Senseless Divide

If I could change one thing about the schools in Chattanooga, my wish would be that everybody could become good friends. I’m talking about the private schools versus the public schools. The rancor is so bad we hardly ever play in sports anymore and what the loathsome TSSAA has done in recent years to the out-numbered private schools is sinful. My dream would be that there would ... (click for more)