Chattanooga Real Estate Market - Where Are We Now??

Friday, October 31, 2008

by Jay Robinson & Robinson Real Estate

“Be Fearful When Others are Greedy and Be Greedy When Others Are Fearful” - Warren Buffett

Very simple advice from one of the most admired and successful investors of our time. The question is Where are we now? As it relates to real estate in Chattanooga I believe we are in a market filled with fear and uncertainty. I see it on a daily basis and true, there is reason for concern and fear. However, as the statistics below attest, we have remained very stable during very scary times. With the exception of a few pocket areas of new construction and suburb development, the Chattanooga Market is holding its own.

Our inventory and our time on the market is up a bit and our prices are flat but WOW! Compared to the national market we are doing great in Chattanooga. With or without Volkswagen, we are one of the most predictable and secure real estate markets in the country. What a great place to invest in real estate! What a great time to buy real estate! Our real estate upside is huge and with the potential Volkswagen impact we are positioned for an incredible 2009 and 2010.

Buyers should not wait for the fear to dissipate as most of it is created by the national media anyway. We need to focus on what is happening locally and not let the national media’s limited perspective of gloom and doom seep into our local consciousness and business decision making.

- Jay Robinson

Sales and Inventory History

Tuesday, October 28, 2008
Category - Residential

Month	Year	Monthly Sales	Avg ListPrice	Avg Sale Price	% Diff Sell/list	Avg DOM	Curr Inventory	Months Inventory
January	2006	280	$172,590	$168,593	97.68%	102.0	2556	9.13
February	2006	381	$178,683	$174,720	97.78%	105.0	2630	6.90
March	2006	455	$168,572	$164,155	97.38%	111.0	2734	6.01
April	2006	462	$180,751	$176,099	97.43%	100.0	2829	6.12
May	2006	539	$200,117	$194,160	97.02%	98.0	2969	5.51
June	2006	560	$196,996	$192,020	97.47%	94.0	2999	5.36
July	2006	494	$207,591	$203,031	97.80%	109.0	3126	6.33
August	2006	505	$178,963	$175,056	97.82%	96.0	3285	6.50
September	2006	395	$170,094	$165,475	97.28%	102.0	3371	8.53
October	2006	436	$206,267	$202 ,682	98.26%	119.0	3439	7.89
November	2006	392	$202,913	$197,626	97.39%	112.0	3390	8.65
December	2006	364	$178,116	$173,482	97.40%	117.0	3264	8.97

Total		5263	$186,804	$182,258	97.57%	105.4	3,049	7.16

January	2007	298	$173,358	$167,944	96.88%	122.0	3193	10.71
February	2007	359	$174,346	$170,668	97.89%	116.0	3349	9.33
March	2007	463	$169,083	$165,022	97.60%	117.0	3330	7.19
April	2007	424	$188,479	$183,250	97.23%	115.0	3508	8.27
May	2007	530	$187,636	$183,388	97.74%	121.0	3672	6.93
June	2007	511	$204,702	$199,884	97.65%	104.0	3706	7.25
July	2007	445	$202,909	$197,628	97.40%	100.0	3825	8.60
August	2007	482	$187,744	$182,616	97.27%	114.0	3929	8.15
September	2007	331	$191,315	$185,162	96.78%	105.0	3941	11.91
October	2007	361	$179,979	$174,576	97.00%	103.0	3882	10.75
November	2007	321	$170,528	$165,170	96.86%	126.0	3849	11.99
December	2007	317	$189,710	$182,457	96.18%	107.0	3738	11.79

Total		4842	$184,982	$179,814	97.21%	112.5	3,660	9.41

January	2008	243	$187,953	$181,216	96.42%	124.0	3604	14.83
February	2008	309	$181,518	$174,444	96.10%	131.0	3627	11.74
March	2008	368	$184,510	$177,382	96.14%	133.0	3653	9.93
April	2008	323	$195,472	$188,031	96.19%	138.0	3659	11.33
May	2008	411	$199,888	$192,960	96.53%	131.0	3733	9.08
June	2008	425	$202,122	$194,855	96.40%	125.0	3743	8.81
July	2008	379	$202,387	$194,783	96.24%	133.0	3665	9.67
August	2008	379	$190,126	$183,494	96.51%	107.0	3579	9.44
September	2008	357	$193,379	$186,918	96.66%	131.0	3456	9.68

Total		3194	$193,039	$186,009	96.36%	128.1	3,635	10.50

Note:

The "Current Inventory" column reflects the number of active listings on the market on the 16th day of each Month.The "Months of Inventory" column is equal to the "Current Inventory" divided by the "Monthly Sales". This reflects how many months it would take to sell out of inventory at the current month's rate of sale.