Top luxury real estate professional Jay Robinson shared insights about Chattanooga’s market over the first half of the year. He noted that over the last six months, Chattanooga’s real estate buyer traffic decreased by 30-40 percent compared to the market’s peak in 2021 and 2022. The trend features higher interest rates, pricing that favors sellers and uncertainty in an election year. This leaves many buyers walking away from deals and choosing to rent, he said.
Mr. Robinson noted that the pent-up demand carried over from past years has now been met leading to a decline in buyer traffic over all price ranges. In spite of this national trend, Chattanooga’s market remains resilient, outperforming other markets, he said. Mr. Robinson pointed to the unique combination of attributions that assist in navigating today’s economy easier than other cities.
“This is an inflection point for the market,” said Mr. Robinson. “There’s an affordability crisis for many would-be buyers. Higher interest rates coupled with higher home prices mean a buyer could be paying 30 percent more for a home. Many buyers are simply choosing to take a ‘wait and see’ approach until interest rates are lowered and some stability occurs in the market.”
NEW NORMALS IN THE MARKET
In 2023, several indicators were observed as the ‘new normal’: The total number of single-family home sales decreased by 12 percent, total sales volume dipped by eight percent, and cumulative days on the market increased by 75 percent. The luxury market showed an uptick but at a much slower pace than in previous years. The total number of luxury sales increased by two percent, and the total sales volume increase by five percent; however, the cumulative days on the market increased by 35 percent, indicating a cooling off in that segment of the market.
The reality is that even though interest rates may shift by a few points throughout the year, changes in the market have become reality and savvy buyers and sellers need to be prepared to move confidently in their decisions, he said.
Mr. Robinson said he recommends two steps for homeowners contemplating the sale of property. “If you’re planning to sell your property this year, make sure it is priced correctly and that the home is in the best condition possible. Those two steps will maximize the return on investment.”
In Chattanooga, the average list price for single family homes (SFH) is $388,691 with an average sale price of $382,662. Homes typically stay on the market for 40 days. For the luxury market, the average list price is $1,549,196 with the average sale price coming in at $1,494,744. Luxury homes now spend an average 44 days on the market.
ADAPTABILITY: THE KEY TO CHATTANOOGA’S REAL ESTATE MARKET
Mr. Robinson said he and his team of seven licensed agents are agile enough to pivot during complex markets and negotiations. As the top agent in Chattanooga with $87,595,390 in sales for the first half of 2024 and 26 transaction sides totaling $40,661,000 in the luxury market, he said he is looking forward to the second half of 2024.
He stated, “Our small team has weathered all sorts of markets. Because of this, we are uniquely positioned to assist buyers and sellers in their first transaction or a transaction for a forever home. Most of our clients come to us because of our reputation for successful negotiations in complex situations. Problem solving is at the heart of all we do. When negotiating a path of uncertainty, it’s important to have a good scout with experience. That’s what we’ve been bringing to the table for three decades.”