The Chattanooga Real Estate Newsletter - February 2024

 

Hello all, and welcome to the Chattanooga Real Estate Newsletter! You are recieving this because, at some point, we have crossed paths in the real estate world. I've created this newsletter to stay in better touch with you all, and curate the most relevant real estate info you'll need into one easy place, so you don't have to. My hope is that whether you're an investor, or simply interested in how the market may affect your personal home, this information can be a tool in your financial toolbox each month.

I'll be providing this newsletter monthly going forward, and you can expect the following pieces of value in each edition:

1. Real Estate Market Info - (With National, Local, and Rental Data)

2. Investment Deals and Opportunities You Can Take Advantage Of

3. A Comprehensive List of Upcoming REI Networking Events in Chattanooga

4. Selected Real Estate News Articles

Thanks for reading, and I hope this provides value to you in your real estate journey.

- Jackson Malcolm

 

 

 

 

 

 

 

 

 

The charts above give us insight into three key areas I like to follow on a national level: 

1. Mortgage Rates, 2. National Pricing Trends, & 3. Housing Activity by Region. 

Firstly, mortgage rates have started to give a relatively small, but welcome, decrease since their high in late fall of 2023. The average 30y rate for January came in at 6.92%, and it has not been unheard of for strong borrowers to break into the low sixes. With the Federal Reserve Holding rates steady at their meeting last week, there is reason for cautious optimism about rate drops at some point in 2024.

Second, the inventory of available houses has started to tick up, and prices slowly tick down, since the market heights of 2022-mid 2023, signalling that the Fed's actions are working and buyers are slowly gaining more options and leverage, despite the higher cost of borrowing money.

And third, great news for us in the Southeastern US! As if we could not already tell by looking around, people are flocking here in droves from areas such as the Northeast and West. The Southeast region is still leading the United States in housing activity, boding well for the future of Chattanooga.

 

 

 

 

 

 

The charts from the Greater Chattanooga Association of REALTORS® January 2024 Market Update provide valuable insights into what the market is doing right here at home:

1. Number of Listings: There were a steadily rising number of active listings throughout the year in 2023, with the typical slight decrease in new listings around the holidays. Buyers are slowly gaining more options.

2. Listing Prices: Despite the rising number of listings, median list prices have remained relatively stable, signaling we still have some sense of balance/equilibrium between buyers and sellers.

3. Sold to List Ratio: Homes are still selling relatively close to their asking price, but we are not seeing offers above ask price nearly as often.

4. Days on Market: Probably the most interesting market dynamic I am following. Days on Market, or the amount of time it takes a home to sell, has been rising consistently since the fall.

For investors and homebuyers alike, these trends suggest that while there is stability in listing prices, the competition for purchasing may be increasing as homes sell closer to their asking price and the market could be seeing a shift with properties taking longer to sell. It's important to monitor these trends closely, as they affect investment timing and strategy.

 

 

 

 

 

 

 

 

 

 

Current rents are shown in the charts above, broken down by bedroom count, neighborhood, and property type, to help guide your investment analysis.