The story of the local housing market has been a comparatively positive one, and leaders with the Greater Chattanooga Association of Realtors reported more good news Monday.
The local Realtor association reported that, for the first time since 2005, housing is on track to contribute positively to the national gross domestic product, which is “the output of goods and services products by labor and property” in the United States, according to the United States Department of Commerce.
Housing can contribute positively to the nation’s GDP in a few different ways—such as direct residential investment or through remodeling projects, according to a news release from the area Realtor association.
Last week, leaders with the National Association of Realtors reported that sales of existing homes rose in July, despite limited affordable inventory.
The national association also reported that the national median price increased year over year for five months in a row.
Anne Marie Wheelock, affiliate broker with ReMax Renaissance, said in a recent blog that Chattanooga’s median sales price for July was $141,500, which is an “affordable” price.
Last year in July, the median price was $142,145.
According to the local Realtor association, officials sold 618 residential units in July. That’s a 16.2 percent increase from this time last year.
New listings in the Chattanooga area increased by 11.8 percent, and pending sales were down 13 percent.
Inventory also decreased by 14.8 percent to 4,983 units in the Chattanooga area.
President of the local Realtor association Mark Hite said in a prepared statement that cheap borrowing costs have helped the housing market bounce back.
“Sustained recovery will not occur without real employment and wage growth,” he said. “Consumers must be confident in both the economy and their family finances before signing on the dotted line. Unimaginable a few years ago, the rate on a 30-year fixed mortgage recently ducked below the 3.49 percent marker. Job creation and GDP numbers will garner particular attention this quarter.”