Area home sales dipped in August, according to the Greater Chattanooga Association of Realtors.
"Eyes continue to fixate on the Federal Reserve and its policy inclinations related to stimulus tapering," Mark Blazek, president of the Realtors association, said in a prepared statement.
On Wednesday, CNN reported that the Federal Reserve will continue its bond-buying program the way it has been for at least another month because of a tepid economic outlook.
New home listings in the Chattanooga region were down 2.8 percent to 1,037.
Closed sales dropped by 4.1 percent, and inventory shrank by 2.9 percent to 5,149 units.
Median sales prices were up 6.7 percent to $144,000.
Days on market decreased 4 percent to 120 days, and the month's supply of inventory was down 8.2 percent to nine months, indicating that demand increased relative to supply.
Strong demand for a limited supply of homes is creating a competitive market, officials said.
"Labor market growth is positive but still tepid," Blazek said. "Things like gas prices, stock market shifts and global economics have a tendency to sway consumer sentiment. At the moment, U.S. housing continues to be a bright spot."
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