The Chattanooga homes sales market is very good. There are roughly 500 homes sales a month in Hamilton County, TN for 2017. There are 1,500 homes currently listed in Chattanooga MLS for sale. Three months of inventory is a very low historical number.
Million dollar homes are selling at a record pace. 27 properties sold for $1,000,000 or more in the first seven months of 2017 in Hamilton County. Only 15 sold in the same time period in 2016. So the inventory of upper price properties has fallen from 4 years of inventory just a few years ago to 14 months in 2017.
The average price per square foot has increased 10% ($112 to $123) from 2016 to 2017 when looking at homes selling in the $200,000 – $299,999. New construction homes in the same price range are selling at $150/sqft and are around 1,800 sqft. New home sales in this price range made up only 14% of overall sales. Prior to 2008, new home sales made up roughly 20% of the Chattanooga market.
So, if the market is so hot, then why is my house sitting on the market for months? 628 houses of the 1,509 houses for sale in Hamilton County, TN have been for sale over 90 days (41% !). When most houses sell in less than 2 months, why do so many homes sit around? My personal experience with buyers is they are wanting renovated or new properties. If your home is dated and shows wear and tear with a premium price, then it will be over looked. Buyers tend to charge much more in their mind for renovations when they see a property that does not capture their immediate “move in” mindset. This is a gross blanket statement and so many variables are at stake. Each property is unique and the reasons that make a home appealing to one person may be offensive to another.
I showed homes to a family from California recently and they were escaping an urban environment east of LA desert. Privacy and the peaceful lush green landscape was calling their name. They wanted a few acres in a rural setting, which is not typical of many buyers. The point being that shoppers want different lifestyle amenities and “feelings” based on their story.
So, in conclusion, the Chattanooga home sales market is very stout. You have to get to the $500,000 price range before you see double digit inventory levels. The worst price category is only 14 months of inventory, which has been close to 48 months in the not so distant past. We need more home sellers and builders to soak up the demand that we are currently generating.
Liberty Homes Chattanooga has helped over 40 families in the last year, it will be an honor to serve you in selling your house or buying your new home !