While some have noted a slight pause this year in the housing recovery, the American dream of homeownership is alive and well, according to the Greater Chattanooga Association of Realtors.
Officials said, "We must still contend with market fluctuations. If buyers are expected to buy homes, they need homes for sale. Also, buyers need reliable financing, better jobs and stronger wage growth. The opportunities are out there, and it is important for people take advantage of them."
Home sales decreased by 9.7% in the month of May, closing with 635 residential homes sold. For buyers out there looking, it’s encouraging that in May, New Listings in the Chattanooga region increased 6.4 percent to 1,227. Despite a slight shrink in inventory levels shrank by 0.6 percent to 5,215 units. Also absorption rates slowed as Month’s Supply of Inventory was up 4.5 percent to 9.3 months. Days-on-Market increased 8.1 percent to 133 days.
The Median Sales Price increased 6.7 percent to $154,450. The Average Sales Price increased to $185,145, which reflects a 5.4 percent increase from April’s numbers. Even better news regarding prices is that both the median and average sales price are up nearly 8 percent from a year ago.
Vicki Trapp, president of the Greater Chattanooga Association of Realtors said, “We’ve had a mixed bag of economic news lately. As expected, national GDP contracted slightly during Q1-2014, which most economists attribute to impermanent factors like the harsh winter. We’ve now had more than four straight years of monthly private sector job growth. It hasn’t been extraordinary growth, but it sure beats mass layoffs. Buoyed by an improving sales mix, home prices continue their ascent despite erratic demand indicators.More inventory, more high-skilled job growth, and less economic and political uncertainty are still top priorities.”