The market summary for January is showing a significant difference from the past few months. The number of listings in the greater Chattanooga metro area has dropped almost in half from November. While this is not completely unexpected due to the holidays, it’s still a big drop. We should see a rebound over the next few months with spring around the corner. Because of the tight inventory home prices should continue to appreciate.
The average sold price is roughly 98% of the listing price. Also, the average days on the market continues to hover around 3 weeks.
Rate Hikes – According to a recent Reuters report the Federal Reserve policymakers say they’ll begin raising interest rates in March. Because of the current economy there’s uncertainty of what might follow.
Bottom Line – While we believe we’ll see more homes available for sale over the next few months, there will continue to more buyers than sellers. Rate increases will have an impact as time goes on but they will continue to stay historically low and prices in our area will continue to appreciate. If you’re considering buying a home don’t wait because rate increases will affect your monthly payments. If you’re selling a home it’s a great time to maximize your returns!
Please contact us if you’re considering buying or selling, we’re here to help.
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