With 2016 being an election year, the economy is on everyone's mind. You can't turn on the television without hearing how awful or good the economy is, depending oto which agenda you are listening. The facts are this, however, unemployment is down to record lows (5%) and interest rates are going up. That usually means a happy economy. For most people, this conversation turns to investment and home ownership. For most of us, our home is our biggest investment. I keep hearing three questions in Chattanooga: is it time to buy, is it time to sell and is my home value back to pre-2008? The national trends say yes to all.
In 2015, Millennials purchased 2 billion or 1/3 of the homes purchased. With the market steadying and interest rates going up, it is predicated that amount could double in 2016. With unemployment down, those that graduated college 7 years ago are employed and have been saving money. The climate is right for them to use that power to purchase their first home. The shortage of listings in all price ranges in Chattanooga could cause a problem, however. Rent is rising and with no homes to purchase, millennials might relocated to be able to afford housing. This would not be good for the Chattanooga economy or future of the city.
The housing market has returned to normal, meaning most people are not upside down with their mortgages any longer. This frees them up to sell their homes. The newly empty nests can downsize and those who have outgrown their homes can up-size. With the current demand for homes and the slow growth of new construction, it could be prudent for those who have waited for their home values to return to consider selling. The exchange of homes would solve the problem of low inventory and could also increase the demand for new construction.
A happy housing economy is a sign of a healthy economy. If you are considering selling your home, call us today. We have designated buyers specialists to help buyers find their perfect home. We have buyers who are looking. Thanks to our knowledge, experience and marketing, our days on market is significantly lower than the Chattanooga average. Our marketing department specializes in selling homes. Info@chattanoogapropertyshop or 423-664-1900 x1002 will get you on the path to your new home.