Derek English: February 2022 Local Housing Market Statistics

Wednesday, March 16, 2022 - by Derek English, president, Greater Chattanooga Realtors

Now that daylight saving time has begun, it means spring is just around the corner and the unofficial start to the home buying season is upon us. However, as you might have noticed over the past few months (and years), residential real estate sales are no longer seasonal but a year-round process. As I have mentioned in previous articles, Chattanooga is a very desirable mid-size city that buyers from all over the country are considering as their relocation destination. This increase in buyers has shifted our market to the point that any day that ends in “y” is a good day to list a home. However, the Chattanooga market is still suffering from an inventory shortage and the limited number of active listings is driving up prices in most, if not in all price points. We have seen this trend through the early part of the year as February’s sales number continued to rise.  

Across the country, real estate markets remain hot ahead of the spring selling season with existing home sales up 6.7 percent as of the latest reports, according to the National Association of Realtors. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4 percent in February, the highest level since May 2019.  

Nationally inventory was at an all-time low of 860,000 as February began, down 17 percent from a year ago which equates to only about six weeks of inventory nationally. According to NAR's Chief Economist, Lawrence Yun, much of the current housing supply is concentrated at the upper end of the market. We are also seeing this increase in higher priced inventory in our local market, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers unable to find homes in their budget. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar. Until housing inventory increases, multiple offer situations and frustrated home buyers will be ever present in real estate transactions.  

Locally, New Listings in the Chattanooga region increased 3.6 percent to 1,055, Pending Sales were up 3.9 percent to 1,023 and inventory levels shrank 32.7 percent to 759 units on the year. In our five-county footprint - Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade, and Walker counties in northwest Georgia - there were fewer homes available in the month February as we have historically ever seen. There is a silver lining to these numbers and that is the fact that we are entering the spring and many people who have staved off the winter months are preparing for the better weather and are looking to take advantage of their increased equity in these super-hot markets. 

The coming months will be telling in regard to what exactly all the pent-up demand will result in for homes coming onto the market. Chattanooga’s home prices continued to gain traction in the early part of the year and sellers are keenly aware that spring is the perfect time to present their homes to the market and to the large pool of prospective buyers. Here are the numbers that sellers will be looking at in moving forward over the next few months. The Median Sales Price increased 22.4 percent to $290,000 from where we were last year at this time. While Days on Market is down 44.7 percent to 21 days, which is very telling as it was 38 days just a year ago. Sellers should also be encouraged as Months Supply of Inventory continued to decrease by 36.4 percent to 0.7 months.  

No matter what your needs are, in this market it’s crucial to consult a realtor. A realtor will work with you to make sure your housing needs are taken care of. That’s Who We R.  

 


2-Story Office Building In East Ridge Sells For $1.3 Million

Property At 700 E. Main By The Railroad Sells For $2.1 Million

Strip Mall In Hixson Sells For $10.75 Million


A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. ... (click for more)

A long stretch of vacant land just off Main Street on the Southside has sold for $2.1 million. The location at 700 E. Main is between Madison Street and the railroad. The sale was to Chattanooga ... (click for more)

A strip mall at 5380 Highway 153 in Hixson has sold for $10,750,000. Developer Bassam Issa sold the property to Paulina Limited Parnership. The property is occupied by Gabe’s, Ollie’s, ... (click for more)



Real Estate

2-Story Office Building In East Ridge Sells For $1.3 Million

A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. The sale was to T4 Llc from Nandlal Khatri. (click for more)

Property At 700 E. Main By The Railroad Sells For $2.1 Million

A long stretch of vacant land just off Main Street on the Southside has sold for $2.1 million. The location at 700 E. Main is between Madison Street and the railroad. The sale was to Chattanooga Builders Llc from General Electric Co. New residential units are expected to go up at the site. (click for more)

Breaking News

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Hamilton County students scored at or above statewide proficiency levels in more than 64 percent of tested areas during the 2021-22 school year according to district-level TCAP results released by the Tennessee Department of Education on Wednesday morning. Of the 28 content areas tested in grades 3-12, Hamilton County students met or exceeded proficiency scores from the state ... (click for more)

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Opinion

Dangerous Dam At Ketner's Mill Has Claimed Too Many Young Lives

Something must be done about the dangerous low head dam at Ketner’s Mill on the Sequatchie River in Whitwell, Tn. (Marion County). This dam is a dangerous public safety hazard that has claimed the lives of many young people through the years. It seems to me to be grossly negligent for the owner of this dam (which no longer serves any purpose) to continue to allow unknowing ... (click for more)

Uncovering Chattanooga’s Hidden Gem

Missionary Ridge is Chattanooga's "diamond in the rough" that can spearhead a new era in our city's growth. Way back on Nov. 25, 1863, soldiers under the leadership of General Ulysses S. Grant stormed Missionary Ridge and broke the back of the Confederacy. The Battle of Missionary Ridge demonstrated the superior forces of the industrialized North and gave their soldiers a chance ... (click for more)