1200 Premier Drive, Suite 140 Chattanooga, TN Each office is independently owned and operated.

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1 THIS MONTH IN REAL ESTATE K im aulston R REALTOR 1200 Premier Drive, Suite 140 Chattanooga, TN Each office is independently owned and operated. Cell: Office: kcraulston@gmail.com Visit my website: CHATTANOOGA AREA MARKET ACTIVITY APRIL 2016 CHATTANOOGA (May 16, 2016) The housing market is being predictable, and that's a good thing. At the beginning of the year, it was anticipated that the prevailing trends of the past year would continue into and through 2016, and that has largely been the case. The number of homes for sale has generally remained lower compared to a year ago, and prices have been steadily rising in desirable communities where homes show well. New Listings in the Chattanooga region decreased 4.5 percent to 1,358. Closed Sales rose by 11/2% to 816 units sold. Pending Sales were up 15.9 percent to 992. Inventory levels shrank 19.9 percent to 3,604 units. Prices were a tad soft. The Median Sales Price decreased 2.1 percent to $148,750. Days on Market was down 22.0 percent to 71 days. Sellers were encouraged as Months Supply of Inventory was down 27.0 percent to 4.6 months. There have been no striking changes to curtail what should be a decent run of home sales over the next several months. Mortgage rates have remained stubbornly and wonderfully low, the unemployment rate has remained at or near 5.0 percent for eight straight months and wages have increased for a great many people. New construction has been slow, and that may be a damper on sales, but the general outlook remains strong. CLOSED SALES - A count of the actual sales that closed in a given month. # units closed May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12 mo MEDIAN SALES PRICE* - Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month. Median price [in thousands] $162.9 $155.0 $155.0 $157.0 $151.0 $150.0 $152.0 $150.0 $144.6 $153.8 $147.0 $148.8 $ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12 mo

2 DAYS ON THE MARKET UNTIL SALE* - Average number of days between when a property is listed and when an offer is accepted in a given month. # Days on market May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12 mo MONTH'S SUPPLY OF INVENTORY - (The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months.) # months of inventory May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12 mo View full report for more details and all the monthly indicators Or copy and paste link: Annual Report Greater Chattanooga Housing Market Or copy and paste link: Greater Chattanooga Association of REALTORS All Rights Reserved. The Greater Chattanooga Association of REALTORS, the region s premier voice for real estate, is made up of real estate professionals engaged in every aspect of real estate throughout Southeast Tennessee and Northwest Georgia. STATISTICAL AND INFORMATIONAL SOURCES: U.S. Department of the Treasury; Federal Reserve System; Federal Reserve Bank of Atlant; U.S. Department of Labor; U.S. Department of Housing & Urban Development (HUD); State of Tennessee; Hamilton County; City of Chattanooga; MoodysEconomy.com; Raymond James & Associates; The Wall Street Journal; Point2 Technologies; Fannie Mae; Freddie Mac; REUTERS.COM; The Associated Press; MarketVector.com; JohnTucillo.com; Bankrate.com; RealEstateABC.com; The Real Estate Book (rismedia.com); The National Association of REALTORS (REALTOR.ORG); Tennessee Association of REALTORS (TarNet.com); Greater Chattanooga Association of REALTORS MLS (GCAR.net) and other sources deemed reliable but not guaranteed. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

3 THIS MONTH IN REAL ESTATE K im aulston R REALTOR 1200 Premier Drive, Suite 140 Chattanooga, TN Each office is independently owned and operated. Cell: Office: kcraulston@gmail.com Visit my website: National Housing Statistics il 2016 Existing-Home Sales Rise in il for Second Straight Month WASHINGTON (May 20, 2016) Despite ongoing inventory shortages and faster price growth, existing-home sales sustained their recent momentum and moved higher for the second consecutive month, according to the National Association of Realtors. A surge in sales in the Midwest and a decent increase in the Northeast offset smaller declines in the South and West. Lawrence Yun, NAR chief economist, says il's sales increase signals slowly building momentum for the housing market this spring. "Primarily driven by a convincing jump in the Midwest, where home prices are most affordable, sales activity overall was at a healthy pace last month as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home," he said. "Except for in the West where supply shortages and stark price growth are hampering buyers the most sales are meaningfully higher than a year ago in much of the country." Home Sales [in millions] Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 1.7 percent to a seasonally adjusted annual rate of million in il from an upwardly revised million in March. After last month's gain, sales are now up 6.0 percent from il May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Single-family home sales inched forward 0.6 percent to a seasonally adjusted annual rate of 4.81 million in il from 4.78 million in March, and are now 6.2 percent higher than the 4.53 million pace a year ago. The median existing singlefamily home price was $233,700 in il, up 6.2 percent from il The share of first-time buyers was 32 percent in il, up from 30 percent both in March and a year ago. First-time buyers in all of 2015 also represented an average of 30 percent. At last week's 2016 REALTORS Legislative Meetings & Trade Expo, U.S. Housing and Urban Development Secretary Julian Castro announced beneficial changes to FHA condo rules, which could help many first-time buyers, are moving forward and are currently at the Office of Management and Budget for review. Existing condominium and co-op sales jumped 10.3 percent to a seasonally adjusted annual rate of 640,000 units in il from 580,000 in March, and are now 4.9 percent above il 2015 (610,000 units). The median existing condo price was $223,300 in il, which is 6.8 percent above a year ago. "Secretary Castro's update that the condo rule changes are in their final stages before implementation received great applause from Realtors both at the forum and throughout the country," said NAR President Tom Salomone. "To ensure that purchasing a condo increasingly becomes a viable and affordable option for first-time buyers, NAR supports the

4 ongoing efforts to eliminate unnecessary barriers holding back condo sales. We hope that progress on this condo rule means we'll see some much-needed changes in the near future." All-cash sales were 24 percent of transactions in il, down from 25 percent in March and unchanged from a year ago. Individual investors, who account for many cash sales, purchased 13 percent of homes in il (matching the lowest share since October 2015), down from 14 percent in both in March and a year ago. Sixty-nine percent of investors paid cash in il. Distressed sales foreclosures and short sales declined for the second straight month to 7 percent in il, down from 8 percent last month and 10 percent a year ago. Five percent of il sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 17 percent below market value in il (16 percent in March), while short sales were discounted 10 percent (unchanged from March). Home Price [in thousands] The median existing-home price for all housing types in March was $222,700, up 5.7 percent from March 2015 ($210,700). March's price increase marks the 49th consecutive month of year-over-year gains. $ $231.8 $232.5 $228.9 $228.5 $221.7 $218.7 $219.1 $220.0 $ $221.5 $213.7 $212.1 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Inventory Months Supply The median existing-home price for all housing types in il was $232,500, up 6.3 percent from il 2015 ($218,700). il's price increase marks the 50th consecutive month of year-over-year gains. "Looking ahead, with demand holding steady and supply levels still far from sufficient, the market for entry-level and mid-priced homes will likely continue to be the most competitive heading into the summer months," says Yun Days on Market May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Properties typically stayed on the market for 39 days in il (47 days in March), which is unchanged from a year ago but the shortest duration since June 2015 (34 days). Short sales were on the market the longest at a median of 120 days in il, while foreclosures sold in 51 days and non-distressed homes took 37 days. Forty-five percent of homes sold in il were on the market for less than a month the highest since June 2015 (47 percent) May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 4.7

5 Interest Rates "The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there's growing concern a number of buyers will be unable to find homes at affordable prices if wages don't rise and price growth doesn't slow," adds Yun. According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage fell from 3.69 percent in March to 3.61 percent in il, which is the lowest since May 2013 (3.54 percent). The average commitment rate for all of 2015 was 3.85 percent Monthly Average Commitment Rate: Feb Feb Mar 30 yr fixed 15 yr fixed 5 yr adjustable Source: National Association of Realtors Existing Homes Sales report. The opinions expressed are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained herein.

6 F E A T U R E D L I S T I N G S. Thinking about buying a home? Might one of these homes be right for you? If so, give me a call and we ll schedule a private tour. If not, I d like to help you find your perfect home. Remember, I can show you any home that s for sale in the area, whether or not it s listed by me or my office. Your perfect home IS out there. I d appreciate the opportunity of helping you find it.

7 F E A T U R E D L I S T I N G S For details, visit my website at Information is deemed reliable but not guaranteed.