Chattanooga home prices continued to accelerate in the first three months of 2017 as sales outpaced the number of new homes put on the market, shrinking the available inventory of houses for home buyers to choose from in the area.
The National Association of Realtors reported last week that the median price of homes sold in Chattanooga during the first quarter of 2017 jumped by 9.8 percent from a year ago to $167,700. Although still 28 percent below the U.S. average home price of $232,100, Chattanooga housing prices continued to rise faster than the nationwide average.
“Inventories are as tight as I’ve ever seen, given the demand among homebuyers,” said Mark Hite, a Keller Williams Realty team leader who is president of the Greater Chattanooga Association of Realtors. “Prices are continuing to rise in this environment, and buyers continue to believe that buying a home is a good, sound investment.”
Mark Hite with Keller Williams Realty is photographed in their offices Tuesday, Dec. 6, 2016, in Chattanooga, Tenn.At the end of last month, Chattanooga Realtors were listing 2,965 homes for sale, or 28 percent fewer than a year ago. The reduced inventory cut the average selling time for houses to only 60 days and many homes are selling as soon as they are put on the market.
“Buyer activity is as charged as ever, especially from people who are moving to Chattanooga from out of town,” said Byron Kelly, president of Berkshire Hathaway Home Services in Chattanooga. “The activity is really kind of through the roof and the market is playing catch up to fill the demand. As a result, prices are going up even faster than appraisers, inspectors and surveyors can keep up with the demand, in some instances.”