Nationally, 2019 was a hot market with home prices up in most areas. Buyer demand continues to be strong but with less seller activity in many locations. Total sales are lower than they would normally be in a more balanced market. New construction has been on the rise in 2019 and is expected to continue into 2020, but experts note that the country is still not building enough new units to meet the demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance.
While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices. With these low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy into the new year.
In Chattanooga, New Listings increased 2.8 percent to 709 compared to December 2018. Year-to-date, New Listings were up 5.5 percent to 14,052. These figures are on track with local and national trends during the holidays, as December is when we see the lowest increase in New Listings.
Pending Sales were up 11.6 percent to 682. Year-to-date, Pending Sales were up 9.8 percent to 10,957.
Inventory levels shrank 17.7 percent to 2,340 units. Sellers saw decreased competition as Months Supply of Inventory was down 23.5 percent to 2.6 months. For comparison, in 2010 the Months Supply of Inventory was 11.1.
Prices continued their upward trend. The Median Sales Price increased 10.3 percent to $215,000. The Average Sales Price increased 12.8 percent to $252,502.
Days on Market remained flat at 50 days.
Sellers saw decreased competition as Months Supply of Inventory was down 23.5 percent to 2.6 months.
Markets may change, but realtors’ commitment to serving our clients doesn’t. Navigating a market that can shift quickly is just one reason why consulting a realtor is so important. We keep a watchful eye on trends locally and nationally that might affect our clients and community. That’s Who We R.