After 2 rough years of declining home prices in the Greater Chattanooga Real Estate Market, it appears we may have finally hit bottom...or at least begun a trend of stabilization!
For the months of December 2010 and January 2011, the Greater Chattanooga Association of Realtors reported that the median price of all homes sold in those months actually INCREASED to the previous year! While the official results for the month of February 2011 have not been announced yet by the Association, my calcultations indicate that we will see the median price of homes sold in February of this year-compared to February of 2010 to be flat or about the same. If this is the case, which I believe it will be, then that would be three consecutive months of stable or increasing home prices.....and the beginning of a trend.
What does this mean for home sellers? It means that the declining values they have been experiencing since October of 2008 may have finally stopped. Will sellers recover all the ground that has been lost in the last 2 years? No-atleast not immediately, but gradual appreciation is normal, particularly after such a long and protracted correction.
What does it mean for home buyers? It means, stop waiting for prices to drop more-get off the fence and buy now, because prices appear to be stabilizing and then will begin to rise. Interest rates are still incredible, so combine that with two years of declining prices and you have value!