In this photograph taken July 15, 2010, construction worker Brian Stocks unloads doors to a new home under construction in Springfield, Ill. Homebuilders’ confidence in the housing market has sunk to the lowest level in more than a year, more evidence that the economic recovery is slowing.(AP Photo/Seth Perlman)Home sales in the Chattanooga area rebounded slightly after taking a beating in the second half of 2010, according to the Greater Chattanooga Association of Realtors.
Figures showed 440 units sold in December 2010, an 18.6 percent increase over November, but still 8.5 percent below December 2009, when 481 homes were sold.
The 371 homes sold in November 2010 were the second-lowest sold in that month for the past decade, other than in 2008 when only 349 homes were sold.
Jennifer Grayson, new president of the Greater Chattanooga Association of Realtors, called the market’s performance “unsteady,” though she welcomed the increase in sales from November.
“Our area is still far from where it needs to be, and that is an ailment that time and an improved employment picture can cure,” Grayson said.
December’s figures, though an improvement, were still the fourth lowest since 2001, beating sales numbers in 2008, 2002 and 2001.
Home sales hotspots for December 2010Top five — sales:1. Walker County — 38 homes sold for $3.5 million2. Catoosa County — 34 homes sold for $4.5 million3. North Hamilton County — 30 homes sold for $6.9 million4. Brainerd/East Brainerd — 24 homes sold for $3.6 million5. Downtown — 23 homes sold for $1.09 millionSource: Greater Chattanooga Association of RealtorsTop five — median price1. Lookout Mountain — $265,000, of seven homes sold2. East Brainerd/Ooltewah — $259,250, of 16 homes sold3. Signal Mountain — $242,500, of 14 homes sold4. Ooltewah/Snow Hill — $190,000, of 12 homes sold5. North Hamilton County — $182,500 of 30 homes soldSource: Greater Chattanooga Association of Realtors
The association reported 5,807 homes were sold during 2010 in the Chattanooga area for a total price of $894,847,321. Homes stayed on the market for an average of 129 days, and sold for a median price of $127,842, according to statistics from the Greater Chattanooga Association of Realtors.
For 2009, Chattanooga saw 5,678 homes sold for a total of $879,608,934, statistics showed. The average amount of time a home stayed on the market was 128 days, and median market price for the year was $129,234.
Last year the expiration of the homebuyers tax credit precipitated steep declines in home sales during the middle part of the year, according to Chattanooga Area MLS President Dan Griess, as many homebuyers moved up their purchases to coincide with the tax credit.
“Still, the stagnation we’ve seen is troubling, and I was very relieved to see the month-to-month increase, as well as the upward swing in price,” Griess said.
Other good news included a 10 percent increase in median home prices from November and 6.6 percent from December 2009 to $137,500, according to Griess, as low-end housing inventory increased in popularity.
But the average number of days a home stood on the market increased to 146 in December from 134 in November, which the GCAR blamed on snowy weather.
Grayson, though she said there was “no question” that the economy was poised to come back, voiced concerns about the Obama administration’s recommendation to end or curtail the federal mortgage interest tax deduction.
“We have been very disturbed about the absence of debate on this issue,” she said.
Griess said even mentioning the reduction in home ownership tax benefits “could endanger property values.”
“Home prices, particularly in high-cost areas, could decline 15 percent if recommendations to convert the mortgage interest deduction to a tax credit are implemented,” he said.
Contact staff writer Ellis Smith at esmith@timesfreepress.com or 423-757-6315.