The National Association of Realtors chief economist is predicting more job growth in 2021 as well as a rise in GPD. Chattanooga had one of the lowest job loss rates in the state of Tennessee according to the Chattanooga Times Free Press. Existing home sales have bounced back sharply, since the Covid19 lock down. Mortgage applications are way up in the late fall. The inventory of homes is 1/2 of what it was in Chattanooga a year ago. All of these factors will make the 2021 real estate market continue to watch home prices climb in Chattanooga. Year to date, the Chattanooga median home sale price is up by 15%. It looks like Chattanooga home prices may outpace the national rate of appreciation. Click below to hear the whole report.
What will the Real Estate Market Look Like in the Winter of 2020?
The National Association of Realtors Chief Economist, Lawrence Yun, predicts that residential real estate will continue to sell well in the winter months. Typically, Chattanooga home sales slow down during the winter. Yun says that mortgage applications for home purchasing is up 30% compared from a year ago. Some home buying activity was delayed by Covid19, and buyers re-entered the market this summer and fall. Yun says that there is "extraordinary demand" for homes right now. That will continue for a while as there is less inventory than there is demand. Chattanooga home builders are building homes as quickly as they can with a backlog of pre-sold homes that they are building right now.
Mortgage rates are near record lows and should stay there for a while. That factor has also made many people rush to the Chattanooga real estate market to buy a home with low mortgage rates.
As people can work anywhere right now, home buyers across the nation are looking for more reasonably priced housing markets that still offer an attractive lifestyle. Chattanooga real estate has been fueled in part by people wanting to move from a more expensive real estate markets to Chattanooga.
All in all, the Chattanooga real estate market should continue to be strong and competitive this winter. If you are thinking about selling your home, don't be scared that winter is starting as the market should still be really good.
Call Nathan Walldorf, 423-544-7700, for any real estate help.
Don't Get in Your Own Way When Buying a Home; 4 Home Buying Tips
Don't look to Zillow as the real estate bible.
Zillow will give you some useful information at times, but that info comes from tax records, which are not always right. Even their home value info is up to 20% off as stated in their own fine print. An algorithm does not know how updated one house was compared to another, if a home has a brow view, or if a home is on a lake. Your Realtor does have access to all of that info, so he/she can compare apples to apples.
Don't Let Emotions Cloud Your Judgement.
As you negotiate a home purchase or sale, you may hit a stalemate where one party simply refuses to give any more. You may be pretty bothered by that fact. You may even feel like it is not fair. In the end all, you have to remove those emotions from the equation and figure out what is best for you (to take the offer or not). Sometimes you may not get everything that you want in the negotiation, but you may get close enough to make it work.
Don't crowdsource your home buying info.
I had a home for sale on Lookout Mountain. The young home buyer was told about a potential repair that would need to be confirmed by the proper professional. That young man proceeded to "crowdsource" information on what it could cost to repair something that he didn't even know needed to be repaired yet. It takes a professional actually viewing the problem and coming up with an estimate to repair something rather than having a random contractor and random friends guess at what it would cost to fix a problem. Don't turn to social media or to every friend around you who has incomplete info. Find the proper professional to help you. Make a good decision after you have all of the facts.
Find a trusted Realtor, who will place you and your best interest 1st, and let that person guide you through buying or selling a home. Call Nathan Walldorf at 423-544-7700
Take it from my past clients...
"We have used Nathan twice now. He is the best! Low pressure, buyer centered service. We know that Nathan has our best interest as his top priority." - Mr. & Mrs. Adams
"Nathan is a great guy! Responsive, patient, experienced and knowledgeable! Can't say enough." - Mr. Brobston
Now is the time to sell! Home sales took a huge spike in June. Homes pending sale were up by 41.9%! Closed sales were up by 8.7% after people went back to home shopping in May. The number of homes for sale is down by 42%. All of this is happening while mortgage applications for new homes are 15% higher than last year. That means that August, September, and October should be great home sales months. The pend-up demand for homes from the spring will result in good fall home sales. Now really is the time to sell your home if you are thinking about it. The amount of days it is taking to sell are down by 8.9% and home prices are up by 4.7%. As a home buyer, interest rates are ridiculously low and your fixed interest rate is a great hedge against inflation that is coming over the next 3 years after all of the pandemic government stimulus money that the government just spent. I had a home buyer buy their 30 year interest rate down to 2.5% in June.
In July the National Association of Realtor's chief economist, Lawrence Yunn, said that Chattanooga has better job growth than the national average. Every week there have been less and less unemployment claims. Many people from northern state are moving to more affordable southern cities like Chattanooga now that they are working remotely full time. The real estate recovery has been a "V' shaped recovery, while the hotel, food, and entertainment industry is still down.
Please know that a 2nd "stay at home order" could really hurt the economy badly, so please social distance and wear a mask.
Call the Walldorfs to sell your home & to buy a home at 423-544-7700.
People ask me all the time what is happening in real estate, so I try to be prepared for that answer. I know that God has provided a bunch of sales for me coming into the Shelter in Place Order, but there are many Realtors who have not been so lucky. Today, I am going to tell you what the Realtor’s Chief economist is saying about the economy’s recovery after Sheltering in Place and what several other economists are saying.
Mid March had opportunity to be on a NAR Leadership call with the NAR chief Economist Lawrence Yun. Yun said, “The economic declines will be sharp but the rebound will be strong when people get back to work. Realtors may not get back some of the lost sales from home buyers who wanted to buy before school starts but delayed their purchases. Home prices should remain stable, because we had housing shortage before crisis and still have it now.”
Bank of America recently released a report on housing that echoed what Lawrence Yun said; “The market was well positioned heading into this recession. Inventory of existing homes was lean and builders were cautious about adding supply.” B of A had 2 other reasons that they do not think this particular recession will be like 2008 was for the housing with large house price drops. “Lending standards have been tight with high credit scores and reasonable down payments, reducing the risk of foreclosures.” and “Government policies – most notably the forbearance programs – should keep people in their homes and avoid forced sales”
B of A also predicted a 37% drop in existing home sales from the February peek and a 50% drop in new construction sales. “According to Zillow, new listed homes were down 19% from March 1 to early April this year, while in normal time they typically rise about 50%. The sharp drop in new listings on the market for sale will help to prevent an otherwise larger imbalance in the market given the collapse in demand. This will mitigate some of the downward pressure on home prices.”
One bright spot is that Inman news recently reported that Zillow is reporting that “Traffic to listings on the portal has “rebounded sharply” to levels “that are actually slightly higher than a year ago.” Overall, for the entire U.S. web traffic was up 13 percent year-over-year for the seven-day period ending on April 13. “It could be coming from optimistic buyers hoping to get an early jump on their plans as soon as restrictions are lifted, or simply from aspirational viewers stuck at home and seeking an escape through real estate,” the report explains. However, Zillow also said in a statement Wednesday that the findings in the report show “renewed interest in the housing market as Americans adapt to this temporary normal.” Goldman Sachs, for example, is predicting an “unprecedented” recovery in the second half of the year, once businesses start to reopen.
The chief of the San Francisco Federal Reserve Bank, meanwhile, says she’s expecting a much more gradual return to positive economic growth.
“The consensus amongst economist is that we will have a rebound in the third and fourth quarters of 2020 and it should be a ‘V’ shaped recovery” -Wharton school of business
The fundamentals of the real estate market are good, and we should see a good real estate market recovery. Please contact me with any questions that you have.
How the 2019 Housing Market Ended in Chattanooga The 2019 housing market in the Chattanooga area ended with a bang. Closed sales were up by 29% in December. The Walldorfs just sold a $900,000 home in December. It is more common to have a slow down in sales in December than a surge in sale. Pending home sales were up 11.6%, meaning that a bunch of homes are closing in January. The median sale price was up 10.3%. Lower mortgage rates offset price gains to keep home buying more affordable. We finished 2019 with only 2.6 months of inventory, which is really low. A balanced real estate market has 5 months of inventory. The Greater Chattanooga Realtors reported, "Buyer demand continues to be strong but with tepid seller activity still in many locations, total sales are lower than they would be in a more balanced market." We need your homes on the market if you are thinking about selling. Call the Walldorfs so we can help you sell your home. 423-544-7700. We have professionals lined up to help you get your home ready to sell.
Are you looking for something to get you in the holiday spirit the week of December 13th?
Here is a list of tons of fun event this weekend.
Friday, December 13th *The Nutcracker @ The Tivoli Theatre, 7:30 PM. * David Barnes, A Very Merry Christmas @ The Walker Theatre, 8 PM. *Santa's Elf Workshop @ The Read House, 5-8 PM. $15. * Mary Poppins @ The Theatre Center, 8 PM. *Enchanted Garden of Lights @ Rock City. 6-9 PM. *North Pole Limited @ the TN Valley Railroad *Ice on the Landing @ the Choo Choo. 2 - 9 PM. *Christmas Underground @ Ruby Falls. *Christmas Lights @ the Zoo, 5:30 - 8 PM.
Saturday, December 14th *Breakfast with Santa @ The Read House, 9-10:30 AM & 11 AM -12:30 PM. *The Polar Express @ IMAX Theater, 9:30 AM & 11:45 AM. *The Nutcracker @ The Tivoli Theatre, 2 & 6:30 PM. *Ice on the Landing @ the Choo Choo. 10 AM - 11 PM. *Chattanooga Holiday Market @ Chattanooga Convention Center. 10 AM - 5 PM. FREE. * Mary Poppins @ The Theatre Center, 8 PM. *Enchanted Garden of Lights @ Rock City. 6-9 PM. *North Pole Limited @ the TN Valley Railroad *Santa Pub Crawl 3 PM. *Christmas Underground @ Ruby Falls. *Christmas Lights @ the Zoo, 5:30 - 8 PM.
Sunday, December 15th *The Polar Express @ IMAX Theater, 9:30 AM & 11:45 AM. *The Nutcracker @ The Tivoli Theatre, 2 PM. *Robert Earl Keen, Countdown to Christmas @ The Walker Theatre, 8 PM. * Mary Poppins @ The Theatre Center, 2:30 PM. *Ice on the Landing @ the Choo Choo. noon to 9 PM. *Chattanooga Holiday Market @ Chattanooga Convention Center. 11 AM - 5 PM. FREE. *Enchanted Garden of Lights @ Rock City. 6-9 PM. *North Pole Limited @ the TN Valley Railroad *Christmas Underground @ Ruby Falls.
11 Reasons Why the Walldorfs Should Sell Your Chattanooga Home?
1. The Walldorf family has been selling homes in Chattanooga since 1926. Nathan started selling homes in Chattanooga in 2005. Nathan has years of home selling experience and a track record of sold homes to prove his success. 2. The Walldorfs Guarantees their work. If you don’t like the service you are getting, they sever their agreement with you and allow you to list your home with another Realtor. 3. The Walldorfs help you get your home ready to sell. It is hard to make your home look its best to put it on the market, so the Walldorfs put you in touch with people who can do the work that you need to do in order to get your home sold for top $. 4. The Walldorfs put your home where home buyers are looking most. 90% of people look for home on the internet, so the Walldorfs make sure that your home is found on the internet by leveraging several different technologies and several different professionals. 5. The Walldorfs networks your home to be sure that potential buyers and their agents know about your home. 6. The Walldorf negotiate to get you top $ for your home. After making your home sparkle in front of home buyers, we seal the deal. The Walldorfs don’t give away your negotiating position. Another Realtor once said to me, “Here is my seller’s counter offer, but they will take $10,000 less than that.” Do you want someone saying that “on your behalf?” 7. Nathan manages your transaction from start to finish in order to make everything go smoothly. 8. Nathan and Charlie Walldorf lead the real estate industry. Nathan was the 2016 Greater Chattanooga Realtor’s President. Charlie Walldorf is also a past Greater Chattanooga Realtor’s President. Both Nathan and Charlie Walldorf will be helping to sell your home as they list all of their homes together. That covers several different generations of potential home buyers between the two of them. 9. Nathan invests to protect the American Dream. He doesn’t just sell your a home, but he also makes sure that local, state, and national legislatures know the impact of laws they are thinking about passing on your home and on your investment in your home. He does this through RPAC and through involvement in the Greater Chattanooga Realtor's Governmental Affairs Committee. 10. The Walldorfs know what they are doing. As the Chattanooga area real estate market is full of so many people who just received a real estate license, you want Realtors who have been in the business for years and who have thoroughly educated themselves to ensure that they give you only the best service. 11. Don’t cut yourself short. People who sold their home themselves reported the following to be their greatest challenges: Getting the right price: 17% Understanding and performing paperwork: 12% Selling within the planned length of time: 5% Preparing/fixing up home for sale: 8% Having enough time to devote to all aspects of the sale: 3%*
Also, the “we buy houses” people including Open Door, Zillow, and Redfin only want to pay you pennies on the dollar for your home.
*According to the 2018 National Association of Realtors Profile of Home Buyers and Sellers