A report from The Greater Chattanooga Association of Realtors states that in 2015, national residential real estate, by and large, had a good year. Supply and demand were healthy in an environment rife with low interest rates and improved employment. The Federal Reserve finally increased short-term rates in December, and more increases are expected in 2016.
Housing markets have shown a willingness to accept this. Save for a few expensive outliers where low inventory and high prices have become the norm, a balanced market is anticipated for much of the country for the foreseeable future. Improved inventory and affordability remain key factors for continued optimism.
New Listings in the Chattanooga region increased 5.3 percent to 732. Pending Sales were up 9.6 percent to 596. Inventory levels shrank 23.3 percent to 3,623 units. Prices continued to gain traction. The Median Sales Price increased 5.3 percent to $150,000. Days on Market was down 38.5 percent to 67 days. Sellers were encouraged as Months Supply of Inventory was down 34.7 percent to 4.7 months. Gross Domestic Product increased at an annual rate near 2.0 percent to close 2015, and that rate is expected to increase next year.
Residential real estate is considered a healthy piece of the national economy. Contributing factors from within the industry include better lending standards and foreclosures falling back to more traditional levels. Declining unemployment, higher wages and low fuel prices have also conspired to improve personal budgets.