Chattanooga Pulse

So, no more beating around the bush: January home sales pretty much tanked.  According to figures from the Chattanooga Association of Realtors (CAR), January saw the sale of just 303 housing units in the area, marking a 23.5 percent decline from the same time in 2008.
“The real estate market continues to be dragged down by a troubled economy,” said CAR president Nickie Schwartzkopf. “Consumers are putting off making major decisions, like buying a home. As realtors we’re trying to show prospective buyers the opportunity that is here in our local market.”

“Admittedly, the winter months also represent slower times for residential real estate, evidenced by the fact that January 2009 sales figures also are off from the previous month by about a little over 30 percent. Still, the challenges in the economy, growing unemployment and widespread consumer pessimism remain the biggest obstacles to revitalizing the housing market, a fact that economist confirm as the leader for an overall economic turnaround.”

However, all is not bad news.  The silver lining in the housing cloud is that Chattanooga housing prices are well below the national average ($129,100 median price, up nearly 2 percent from last year, but over $40,000 less than the national average), which makes the region very attractive for people looking to move out of financially overpriced areas such as Florida and California.  ”The advantage to our local market is found in our affordability level,” said Multiple Listing Service president Kathy Tucker. “Add in the fact that all the benefits of Northwest Georgia and Southeast Tennessee being such a scenic, great place to live, those moving to our area can find such great improvements for their quality of life, you really couldn’t pick a better place to call home.”

So, bottom line: if you’re looking to buy a nice house at a bargain-basement price – especially taking advantage of the first-time homebuyer credit that is part of the new Stimulus Plan – this is the perfect time to bargain shop.  And if you’re trying to sell your house, be encouraged by the fact that we seem to be bottoming out right now, and that a majority of economists are predicting the current recession will end sometime later this year.