Chattanooga Homes Take a Bit More Time to Sell in July
The most telling statistic from the latest Greater Chattanooga Realtors real estate market report is that homes are spending 5% more days on the market in July. Realtor are seeing the fast pace of real estate from the past 2 years slow a bit lately. Home prices are and have been outpacing median household income growth for months. In certain popular areas of Chattanooga, Realtors are seeing it take more time for homes to sell and are seeing home buyers reject aggressively priced homes. Sellers are having to reduce their prices to a level that home buyers are willing to pay.
The Federal Reserve did lower interest rates recently, which does help home buyers afford more in their home, but home buyers are still being careful.
That does not mean that the market is not good (the market is still good). Closed home sales were up by 9.6% in July and the median sale price was up by 12.7%. Homes that are under contract to sell (pending home sales) were up 15.2% in the Chattanooga area, so that means that the August closed home sales will be up. Realtors expect pending home sales to be down in August as the market activity has been slower in August. The monthly supply of homes for sale was also down 13.9% in July. There are 3.3% more listings that came on the market in July, but the continued lack of inventory does push pricing up and create increased competition for the homes that are for sale.
The Greater Chattanooga Realtors market report does warn of a bit of an economic slow down, "Although the economy should continue to perform well for the rest of 2019, most economists see a mild recession on the horizon." Chattanooga Realtors are seeing the real estate market slowing a bit locally in August. September, October, and November are all great real estate month, so we will see how the market fares in the months to come.