Real Estate Slowdown Or Normalization?

Friday, March 21, 2014

After several months of increased home sales and prices, a drop off from what is considered to be “normal” is easy to be confused with a market slowdown. However, if one follows the financial trends, it is more likely that the greater Chattanooga region is experiencing a first quarter bout of “normalization.”

As mortgage delinquencies fade, banks are listing bargain-priced product less often. That means investor activity – which accounts for a substantial market share – is moderating. That's not to say that rates and prices aren't still attractive to owner-occupant buyers. They most certainly are. Some short-term volatility is expected as part of a normal market readjustment. 

Closed sales were down 15.1 percent from last year’s numbers, closing with 417 residential units sold. New listings in the Chattanooga region decreased 2.0 percent to 934. Inventory levels shrank 5.3 percent to 4,681 units.

Prices remained determined as the Median Sales Price increased 17.6 percent to $143,500. Days on Market were up 7.0 percent to 137 days. Absorption rates improved as Months Supply of Inventory was down 4.7 percent to 8.2 months. 

Greater Chattanooga Association of Realtors President Vicki Trapp said, “The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction. There is no denying the fact that we've now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There's still work to be done. Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.”


Real Estate Transfers For May 19-25

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) ... (click for more)

River City Company And The Strand Achieve green|light Certification

green|spaces is adding two more companies to the growing list of green|light certified businesses – River City Company and The Strand Hair Salon. "green|light, a program of green|spaces, assists local businesses of all sizes and industries to be more sustainable in daily operations. Companies focus on a variety of areas including energy, water, recycling, green cleaning, landscaping, ... (click for more)

Large Hole Develops In Lane Of I-24 Eastbound Over Chestnut Street; Emergency Repair Undertaken

A large hole developed in the I-24 eastbound bridge over Chestnut Street in Chattanooga on Sunday evening. Jennifer Flynn of TDOT said, "The hole is such that we are having to close a lane to protect traffic.  This will cause a significant backup in traffic, especially given the holiday.  "This is the same bridge, but different location that we recently did an emergency ... (click for more)

12 Lost Hikers Rescued At Rainbow Lake, Edwards Point

Eleven adults and a child were briefly lost at Rainbow Lake and Edwards Point trails on Signal Mountain on Sunday. A 911 call was made at 9:45 p.m. from one of the hikers reporting the group lost sunlight hiking out of the trails at Edwards Point. Th Signal Mountain Fire Department and the Walden's Ridge Emergency Services have responded to the scene to ... (click for more)

Parking Discrimination Downtown

Many taxpayers who reside in Chattanooga (but outside Chattanooga's core) feel left behind when it comes to neighborhood paving, sidewalks, policing, streetscaping, street sweeping, public transportation, and other services. Some think most tax dollars are spent on downtown and not in their neighborhoods. It's not as if they can't vicariously experience the largesse of downtown. ... (click for more)

Roy Exum: One Nameless Ghost

One hundred years ago the United States was at war. The most intense fighting during World War I was on what was called The Western Front. The Germans wanted to invade France from the north and in order to do it, they had to push through Flanders province in Belgium. It has been described as a hell unequalled in raw hand-to-hand combat, In just four months on Flanders fields, ... (click for more)