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 April 20-26

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)

Eagle Bluff Woods To Feature New Homes Inside Eagle Bluff Golf Community

 Eagle Bluff Woods featuring new homes inside Eagle Bluff will have a grand opening on Thursday at 10 a.m. It will be at 7216 River Run Dr. Better Homes & Gardens Real Estate Signature Brokers, GT Issa Construction, and The Chattanooga Area Chamber of Commerce will coordinate this event. The new residential community within the Eagle Bluff Golf Club community will ... (click for more)

Severe Thunderstorms Cause Damage On Signal Mountain; Widespread Power Outages Reported

Severe thunderstorms that came through around  7:30 p.m.  brought trees down on Signal Mountain, and widespread power outages were reported. Two homes that had damage were at  205 Sunnybrook, with eaves and gutter damage, and  601 Dunsinane Road, with major damage to the roof line and a tree fell through the living room area. No injuries were ... (click for more)

Rescuers Called Out After Male Hits Head After Fall From Rope Swing; He And Companions Trapped On One Side Of The Creek

Rescue crews were setting up a safety line at the first creek crossing at the Pocket Wilderness at the foot of Mowbray Mountain after a male was injured on Saturday night and he and his companions were blocked by high water. Around 7:30 p.m. , a 911 call was made reporting the male had fallen from a man-made rope swing and hit his head on the rocks below at the Blue Hole ... (click for more)

Whatever Happened To The People's Game Warden?

Earlier this year a Chattanoogan.com article published a Tennessee Wildlife Resources Agency  (TWRA) Wildlife Officer encouraging readers to turn in anyone keeping or caring for an orphaned raccoon, squirrel, bunny or deer, because it may have rabies or pose a danger to some fictitious person.   In another  article, the TWRA Officer invaded a girl's home, seized ... (click for more)

Roy Exum: Einstein Explains Insanity

In September of 2002, a detailed study of “Tennessee Schools on Notice” was prepared by the state’s Office of Education Accountability. This was when Senator Bob Corker was the Mayor of Chattanooga and it proves, pretty thoroughly I might add, that after millions upon millions of extra dollars have been poured down the collective drains at schools such as Orchard Knob, Clifton Hills, ... (click for more)