posted August 14, 2008
According to figures from the Multiple Listing Service (MLS) of the Chattanooga Association of Realtors, Southeast Tennessee and Northwest Georgia saw 1,759 units sold in the second quarter. This figure represents a 19.6 percent decline from the 2007 second quarter.
Comparing this year’s first and second quarter sales, market statistics reflect a 20 percent increase.
“With the local market filled with plentiful choices in housing, and at affordable and realistic prices, Chattanooga is showing why this is the right real estate market for more and more people ready to make the move,” said Pam Duffy, president of the Chattanooga Association of Realtors. “We’re finding our clients who are ignoring the hype and opening the door to the great opportunities this market presents are very happy with what they find. But we can’t say how long these conditions are going to last.”
“I think our market is underperforming as buyers continue to sit on the sidelines trying to time the market,” said MLS President Randy Durham. “The reality is this is the right time, the right market and delaying a decision isn’t going to serve the serious buyer. Waiting around, kicking the tires, it only keeps someone from realizing all that homeownership has to offer. With tax-saving opportunities, freedom to make home improvements, the chance to build up your nest egg and all the social benefits homeownership does to strengthen the community, the benefits of homeownership reach far and wide.”
CAR officials said, "The second quarter statistics also show that homeownership remains within reach for more homeowners. A strong indicator for this is the area’s median home price, which is the middle price point where half of the homes sold for more and half sold for less. A median price is used because it is a more reliable gauge that does not become overly skewed by extreme high or low sale points. For the 2008, the second quarter median price was $139,900. Compared to previous quarters, the current median price is down 2.1 percent from last year but up 3.6 percent from this year’s first quarter. However, when compared to the aggregate median price of $206,500, as released by the National Association of Realtors, the local real estate market’s affordability is clear."
Ms. Duffy said, “Affordability issues and unsustainable price appreciations have crippled other markets. Our area’s buyers and sellers have been realistic and we were able to avoid the unfortunate mess others are experiencing in parts of Florida, California, Nevada and Arizona.”
Local median prices have remained steady. The first to second quarter growth was fueled by more robust sales in housing units priced in the $100,000 to $200,000 range.
“Good jobs and economic development strongly impact real estate markets. With the recent announcement from Volkswagen and the ancillary effects it will bring to our region, the local market will remain viable and rewarding for many years to come,” said Mr. Durham.
Separating out the Northwest Georgia segment of the recently released figures, the second quarter also showed higher levels than the first quarter. In terms of units sold, the April, May and June month quarter bested the first part of the year by 11.5 percent with a median figure growing over 6 percent. Compared to the same time last year, the second quarter data softened 7 percent for units sold and only 1.5 percent for the median price.
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