Home sales were up in May, often with quick multiple offers that are near, at or even above asking price, depending on the factors of the home and submarket in question. It was widely predicted that healthy sales activity would be seen during the second quarter of 2016, and the market has not disappointed.
New Listings in the Chattanooga region decreased 6.0 percent to 1,313. Pending Sales were up 9.4 percent to 957. Inventory levels shrank 21.0 percent to 3,621 units.
Prices gained traction. The Median Sales Price increased 7.0 percent to $165,900. Days on Market was down 13.0 percent to 67 days. Sellers were encouraged as Months Supply of Inventory was down 28.1 percent to 4.6 months.
Although inventory is still being stretched thin in many areas, low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. How long that can continue without fresh supply remains an important question, but conditions are seemingly good enough for serious buyers. With the current slow state of new construction for non-rental households, the road ahead could be tricky if demand remains high.