Realtors Report First Quarter Reaches New High
Irby Park
posted April 27, 2003
March home sales through the Chattanooga Association of Realtors (CAR) Multiple Listing Service soared to a record 489, surpassing last year’s previous record 453 for the month and pushing the total for the year to date to a new first quarter high.
Across the nation, the National Association of Realtors (NAR) said existing single-family home sales in March “remain at a historically strong level.” March sales activity, said NAR, was 2 percent above the 5.42-million unit level in March a year ago and was the 11th best month on record.
Primarily existing single-family home sales in the Chattanooga area of Tennessee and North Georgia climbed sharply over the 397 of a month earlier and pushed the year’s total to 1,239 compared to 1,163 for the first quarter of last year.
The median price for homes sold through the MLS in March was $110,000, CAR reported, half selling for more and half for less. CAR said 139 of the homes closed in March were sold in 30 days. Well over half of the homes sold, 276, were sold within 90 days after being listed. Of the total sold, 149 were on the market more than 121 days.
Nationally, home sales were at a seasonally adjusted annual rate of 5.53 million units in march. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates factor out seasonal variations in resale activity.
David Lereah, NAR's chief economist, said nationally sales in March declined from the pace at the start of the year, but “there's a huge momentum of sales activity continuing, and we're now at a much more sustainable level for home sales going forward. We believe this will be the second-best year on record for housing."
NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, Fla., said low interest rates are offsetting sluggish economic growth. "The drop in mortgage rates over the last year means opportunities have been opened for hundreds of thousands of potential buyers who couldn't afford to enter the market in the past," she said. "That will help to offset the effects of weakness in other sectors of the economy and will keep the housing sector on a healthy track."
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record-low 5.75 percent in March, down from 5.84 percent in February; it was 7.01 percent in March 2002. Freddie Mac started tracking interest rates in 1971.
The national median existing-home price was $163,100 in March, up 6.5 percent from March 2002 when the median price was $153,200.
In the Chattanooga area, if home sales through the MLS continue at the present pace the total for the year would reach close to 5,000, slightly below last year’s 5,547 for the year. But traditionally sales reach the highest rate in the summer months which could push the total even higher.
Well over half the homes sold, a total of 285, were three bedroom homes and 118 had four bedrooms or more. Sales included 15 residences priced at $500,000 or more with two of them selling for more than $1 million.
March sales included nine multi-family and 17 condominiums or co-ops.
Regionally, the existing-home sales pace in the South declined 4.3 percent in March to an annual rate of 2.22 million units, but was 5.2 percent above a year ago. The median price of an existing home in the South was $152,700, which was 6.3 percent higher than March 2002.
Existing homes in the Midwest were selling at an annual rate of 1.22 million units in March, down 5.4 percent from February, however, the pace was 1.7 percent above March 2002. The median price in the Midwest was $137,400, up 5.9 percent from the same month a year earlier.
Home resales in the West fell 7.0 percent in March to an annual rate of 1.46 million units, and were 1.4 percent below a year ago. The median existing-home price in the West was $219,700, up 5.9 percent from March 2002.
Existing-home sales in the Northeast dropped 7.4 percent from February to a pace of 630,000 units in March; the rate was 1.6 percent below March 2002. The median existing-home price in the Northeast was $178,100, up 14.4 percent from a year ago.
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