Chattanooga home sales rose for the fifth month in a row in May, as a limited supply of housing inventory slightly stalled existing home sales nationwide.
Locally, sales in Southeast Tennessee and Northwest Georgia rose 22.8 percent from this time last year and 11 percent from last month, according to the Greater Chattanooga Association of Realtors.
Mike Hite, Greater Chattanooga Association of Realtors, said that a more limited supply of listings in the Chattanooga area was good news for local sales.
“Combined with reliable sales volumes, fewer active listings have translated into competing bids on existing inventory and modest price gains in select neighborhoods,” he said in a prepared statement.
The median sales prices increased by nearly 10 percent to $137,000, and the average number of days on the market dropped 6.7 percent from last year’s number to 126 days.
“With home sales and prices increasing, coupled with days on market and supply decreasing, the greater Chattanooga area continues to buck national trends as we look to carry that momentum into our sixth straight month,” Hite said.
Nationally, despite the limited supply of inventory dampening existing home sales in May, sales are still better this year than last, according to the National Association of Realtors.
Total existing homes declined 1.5 percent but are 9.6 percent above the pace from May 2011.
"The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. The normal seasonal upturn in inventory did not occur this spring," Lawrence Yun, National Association of Realtors chief economist, said in a prepared statement. "Even with the monthly decline, home sales have moved markedly higher, with 11 consecutive months of gains over the same month a year earlier."
Click here to read more about the national home sales situation.
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