Now that 2016 is in the rear view mirror, it's time to take a good look at how Chattanooga's real estate market developed throughout the year. In what ways did sellers benefit? How did buyers behave? Most importantly … what can we expect?
The numbers are impressive.
This exclusive report will highlight the most important Chattanooga real estate numbers from the past year – and tell you exactly why you should expect your home to sell fast in 2017.
Let's dive into 5 reasons why 2016 was an outstanding year to sell your home in our area. Then, we'll look at a few opportunities (and threats) for 2017.
1. Average home sale price continues to rise.
We saw seller after seller come away with more money than they were expecting to get – and faster than they had hoped for.
The average price was 6.5% higher than 2015. With inventory low, demand was high. Buyers were motivated to close more quickly and submit higher initial offers.
This higher sale price was positively affected by the next reason 2016 was great: low inventory of homes for sale.
2. Available inventory of homes is still low.
The number of homes available now is 19.8% lower than this time last year. What does that mean? It means that buyers aren't as choosy when they shop for a home. They know they're competing with other buyers for the same small number of homes that fit their needs.
And when they like a home, they make an offer – before someone else does.
But low inventory doesn't mean fewer people are selling. The reality is exactly opposite.
3. More home sales were closed in 2016 than in any prior year.
As always, several areas stand out for their strong growth. Urbanism among millennials and retiring boomers spurred explosive growth in downtown areas like St. Elmo and Highland Park.
Companies like VW and Amazon delivered on job creation, while home builders brought appealing new communities to the market. This led to exceptional growth in Apison and East Brainerd.
Overall, closed sales were up 9.9% and trending toward a spectacular 2017. A handful of neighborhoods are uniquely positioned to benefit from unprecedented interest.
4. Homes were on the market for fewer days.
It’s hard to be patient while you’re waiting for your home to sell. After all, you’re sitting on thousands of dollars - and potential delays to your life and family goals.
Fortunately, the number of days the average house was on the market declined again in 2016. With interest rates beginning to rise, buyers hurried to lock in low rates. And they chose homes quickly, creating more opportunities for well-represented sellers to benefit. And in 2016, sellers were represented best by Jim Lea.
Jim Lea sells homes 2.5 times faster than the average agent.
5. Sellers received a higher percentage of their asking price.
It was an incredible year to sell your home in Chattanooga! Sellers got an average of 95% of their original asking price across the market in 2016.
Jim Lea nets his sellers an astonishing 99.16% of their asking price. That's $8,320 more than the average agent.
We're excited! Here's why: 2017 holds even more promise.
2017 Opportunities and Threats
Rising interest rates and low home inventory will drive rapid home sales.
Competing buyers may push prices higher.
• Smart Buyers Will:
Enlist expert guidance to identify and make it to the best homes before your competition drives up the price.
• Seller Opportunity:
Sellers will benefit from strong interest.
• Seller Threat:
Many sellers will leave money on the table.
• Smart Sellers Will:
Select the agent who confidently prices, markets, and negotiates in order to extract maximum market value.
• Look For:
A handful of neighborhoods will enter the spotlight for the first time, resulting in tremendous price gains and appreciation for existing owners and buyers.
• Get Ahead By:
Selecting the agent who gets better results than the rest.
Because Jim Lea offers better strategy and better marketing, our clients really did get better results in 2016. We're excited about 2017's potential!