posted September 24, 2008
The local real estate market remained soft in the month of August, according to the latest figures released by the Multiple Listing Service (MLS) of the Chattanooga Association of Realtors.
With 584 units sold in August, the market was off 20.7 percent when compared to August 2007.
Compared to the previous month’s reported number, the August figures are virtually unchanged, but up by a less than 2 percent margin.
The numbers reflect the continued, shaky consumer confidence rippling through major sectors of the economy, officials of the Chattanooga Association of Realtors said.
“We’ve entered some challenging times but real estate remains a sound way to build equity and grow a nest egg to prepare for the future,” said Pam Duffy, CAR president. “Subprime mortgages and caustic loans helped many in this country make homeownership a reality, but not at the cost we anticipated and we’re now working through attempts to get our financial and secondary mortgage markets back on track. We are optimistic that responsible action and intervention measures by the Federal government will rebound us towards a better functioning market that continues to keep homeownership at the cornerstone of the American Dream.”
“It’s going to take some time to work through the process towards stabilization,” said MLS President Randy Durham. “In this time we’ll really see what drives any housing market – real demand, where people buy and sell real estate based on their individual needs and changes in lifestyle. Growing families want more space, a new job or promotion can come with a move to a new town and new home, and retirees sometimes want to downsize or move closer to family or to a special place, like Chattanooga, to enjoy those golden years.
“Home sales are still happening. People who can get past the negative headlines and hesitant, soured confidence will discover that this is an attractive market. Inventory is high, providing lots of choices for buyers, mortgage rates are at record lows, and most properties are competitively priced to sell now.”
For August the median price figure for Southeast Tennessee and Northwest Georgia was $136,900, which officials said is fairly consistent with other figures reported throughout the year. It does, however, represent a 3 percent decrease from the same time last year and, coincidently, the previous month. The affordability of the local market can be clearly seen when compared to the median price most recently reported by the National Association of Realtors, which saw a national aggregate median price of $203,100, officials said.
In August of this year, the average days-on-market was 115 days or less than four months. That compares to August of last year, where the figure was 111 days and to 125 days in July of this year.
“With rising energy costs, pain at the pump, and the tightening of purse strings we’re all dealing with in these challenging times, the ability to get more house for your dollar here than in just about any other market out there is an attractive factor consumers should not overlook,” said Ms. Duffy. “Our local economy is poised for a boost with an influx of new jobs and investments. It makes it all the more crucial to restore market liquidity and keep the process of moving capital fluid now and in the future.”
Mr. Durham said, “Sales are down and people are nervous, we understand that. But if people look at their own situation and needs, they may find this to be the right market for them and will be looking back five years from now glad they made the decision to buy.”
Previous Year Statistical Comparison
August 2008 Home Sales: 584
August 2008 Median Price: $136,900
August 2007 Home Sales: 736
August 2007 Median Price: $141,800
Previous Month Statistical Comparison
August 2008 Home Sales: 584
August 2008 Median Price: $136,900
July 2008 Home Sales: 573
July 2008 Median Price: $141,500
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