Here’s a year-over-year market comparison for November.
I’m sure you’ve heard about what an interesting year it’s been for real estate from various media, but it’s important to remember that what’s true for the national housing market may not apply to our market. When I talk about “our market,” I’m specifically referring to five counties: Hamilton and Sequatchie in Tennessee, then Catoosa, Dade, and Walker in Georgia.
When comparing last month to November 2019, we had a 19.3% increase in closed sales (932 total), with an average days on market of 35. (Days on market is a measurement of how long it takes for a home to go under contract from the moment it’s listed for sale on the market). There has actually been a 30% year-over-year decrease in the average days on market.
Here’s a fun coincidence: In addition to logging 932 closed sales for November, we also had exactly 932 new listings hit the market (down 0.4% from a year ago). Our total inventory right now is 1,399 homes—a scary 51.8% decrease from last year at this same time. There are just not enough houses in our market to keep up with demand, and many homebuyers are feeling the burn.
Our current market is the product of several natural and financial factors. First, the spring tornadoes destroyed properties, forcing some families into the market. On top of that, demand was fueled all year long by historically low interest rates. Incentivized by the prospect of increased purchasing power, buyers continue to pour into the market.
Also, consider the fact that our area’s cost of living is very attractive to residents of the major U.S. cities who are now seeking a change of pace in light of their newly granted ability to work from home. Lastly, we’ve had an entire decade of lagging home construction. Back in 2008, the average number of homes being built was over one million, and only now are we starting to reach those levels once again.
Overall, our market can be best characterized by low supply and sky-high demand. If you’re interested in learning more about what’s going on in your neighborhood or want to know what your home might be worth in this market, please feel free to reach out via phone or email. I’d love to hear from you and find out how I can serve your specific real estate needs.