Number of homes for sale a new low

Following the Christmas selling season, the inventory of merchandise available for sale at your local store is low and may be somewhat picked over. You will find a similar scenario in several segments of the area housing market.

The Greater Chattanooga Association of Realtors reported that the local market began this week with just under 4,700 residential homes available for sale, its lowest point in six years! During 2005 and the spring of 2006, thanks to a record number of new housing starts, the inventory of homes available for sale passed the 5,000 mark and did not return to this level until very recently.

The recent shift in inventory levels has been gradual, as our housing inventory is returning to a more "balanced" market. This phenomenon is actually a good thing and is the result of several factors. The most evident factor is that there has been an increase in buyer confidence, resulting in a 16.9 percent increase in sales over 2011 figures. Contrast this to the number of new listings coming to market in 2012, which is up 5.2 percent, according to GCAR. We are simply selling homes faster than they are coming to market!

While there are numerous new construction projects being built out around our area, the number of new construction starts is a fraction of what it was in 2006. This is a second factor influencing the decreased level of local inventory available for sale.

What are the results of this increased demand relative to decreased supply? First, prices are on the rise; the median price in the Greater Chattanooga region has moved up 5.2 percent over the last 12 months. It is also taking less time to sell a property, as the average days on the market is down 5.1 percent over the last year. With fewer properties to choose from, there is less negotiation taking place than in past years.

What would a move to a new home do for you and your family in 2013? Contact a knowledgeable member of the Greater Chattanooga Association of Realtors for a free market value analysis of your home. The inventory is low, so spring of 2013 will be a good time to get your property on the market!

Mark Hite is president of the Greater Chattanooga

Association of Realtors

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