posted August 27, 2007
Buyer’s market characteristics continue to dominate the greater Chattanooga area’s residential real estate market as July witnessed softer sales, according to the Multiple Listing Service of the Chattanooga Association of Realtors.
The 661 sales posted in the month of July represented a 20 percent drop over the same time in 2006, which was a record-setting real estate year for Southeast Tennessee and Northwest Georgia.
It was also a 10% drop in sales from the previous month.
In its historical context, it is important to note that the dip in sales from June to July is a natural trend, averaging around 10% over the past several years.
“While July sales will always be slower than June, other market factors are compelling buyers to sit on the sidelines,” said Jason Farmer, president of the Chattanooga Association of Realtors. “Confidence in both our financial and real estate markets have taken a hit but real estate is a different game. Stocks are capricious and equity can disappear in the blink of an eye; home prices, especially in our region, are not as volatile and provide owners long-term gains and the ability to establish a nest egg.”
As mortgage problems and foreclosures expand, particularly with subprimes, area realtors urge caution when looking at lending options. Dan Griess, the local Realtors Association’s MLS president said,
“Abusive lending practices by some lenders spurred a lot of the problems we’re seeing today. In many cases, unscrupulous subprime mortgage providers preyed upon prospective homeowners offering loans they didn’t understand nor truly have the financial means to meet its long-term obligations.”
Mr. Farmer said, “Borrowers who have proven that they can meet their mortgage responsibilities, whether it is prime or subprime, should continue to have access to mortgage loans from responsible lenders.”
And buyers looking here will find affordability on their side, especially compared to the $228,900 July median price released by the National Association of Realtors, he said. Locally, July’s median home price was $145,000, which is an increase over last month but slightly less than 2006’s $149,000 median value. The median price is the price at which half sold for more and half sold for less and is often a better indicator than average, which can be distorted by extreme highs or lows.
Previous Year Data Comparison
July 2007 Homes Sold: 661
July 2007 Median Price: $145,000
July 2006 Homes Sold: 793
July 2006 Median Price: $149,000
Previous Month Data Comparison
July 2007 Homes Sold: 661
June 2007 Median Price: $145,000
June 2007 Homes Sold: 729
June 2007 Median Price: $139,500
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