Richard's Real Estate Thoughts

Chattanooga Home Purchase Market

The greater Chattanooga real estate market is divided into 16 areas. Over the last three months the overall Chattanooga market has undergone some impacting changes, as has the national housing market.

1. Expiration of the Home Buyer Tax Credit
2. General Loss of Rural Development Funds
3. Increase in foreclosure properties

Our local region has excellent prospects as we head into the remainder of 2010 and the start of 2011. The VW plant should begin production in 2011. The Alstom plant has already started production. Other area companies have indicated increased hiring or that they anticipate an increase in hiring.

The recent quarter trends in home sale activity point to stability, if not growth in our market. 

The increase in units sold from June 2009 to June 2010 is likely attributed to the Home Buyer Tax Credit which required contracts to be signed by April 2010 and had required that the transaction close by June 2010. That closing deadline was extended at the last minute, but only for pending contracts.

Comparative YTD home sales shows an increase this year of over 250 homes more than last year at this time. Again much of this increase can be attributed to the tax credit. With the improving economic conditions in the local area, we can hope that the trend can be sustained. 

The July sales numbers will give more indication of the local impact from the expiration of the tax credit.

Chattanooga Purchase Mortgages

FHA is a good financing option for homes in the Chattanooga market. Approximately 80% of the home sales in our area qualify under the FHA maximum loan amount.  For many buyers with properties in Chattanooge city limits CNE can provide additional funds for closing assistance. Fro more information about FHA and CNE assistance call or email me. Contact information is below.

FHA, VA, Rural Development, Conventional, Jumbo,
Reverse Mortgages, FHA 203k Renovation

Home financing in Tennessee and Georgia.

www.RichardSmithHomeLoans.com