3221 Harrison Pike Chattanooga, TN 37406 | Phone: (423) 624-9992 | Fax: (423) 624-9435

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Local News and Information Archives for 2022-11

How Are Building Costs Affecting Us?

Rising mortgage rates approaching 7% along with declining builder sentiment stemming from stubbornly high construction costs and weakening consumer demand pushed new-home sales down at a double-digit rate in September.

Following a brief uptick in August, sales of newly built, single-family homes in September fell 10.9% to a 603,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“Builders continue to face lower buyer traffic due to declining affordability conditions as the housing downturn continues,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB). “Builder sentiment has declined for 10 consecutive months. The entry-level market in high-cost areas has been particularly affected, with growing numbers of first-time and first-generation buyers priced out of the market.”

“New home sales are down 14.3% on a year-to-date basis compared to 2021,” said NAHB Chief Economist Robert Dietz. “Moreover, sales are now down 1.9% on the same basis compared to 2019 levels that were prior to the Covid-related changes to interest rates.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the September reading of 603,000 units is the number of homes that would sell if this pace continued for the next 12 months. Notably, the new home sales data do not incorporate cancellations, which according to NAHB survey data have more than doubled compared to a year ago.

Here in the South, new home sales fell 12.1%, but all regions dropped including an 8.1% decrease in the Northeast, 21.2% in the Midwest and 17.6% in the West.

However, some local builders in the Chattanooga area are reporting positive stories. “There is a very compelling financial benefit to buyers purchasing a new GreenTech home today in a high inflation/appreciation environment. GreenTech is focused on buying down interest rates and locking rates to help buyer monthly payments remain cheaper than market rental rates. Additionally, the total cost of ownership of a new GreenTech home is lower than an older home when you include maintenance costs,” says Chad Tyler, CEO of GreenTech Homes. 

If you’re ready to start a new home journey or remodeling project, visit the membership directory at www.HBAGC.net for a list of professionals to help you.  

Upcoming Events Sponsored by Our HBAGC Members

Looking for fun events in the Chattanooga area? Here are some upcoming happenings sponsored by members of your local Home Builders Association of Greater Chattanooga.  

 

EPB is proud to sponsor Reindeer on the Riverfront & Lighted Boat Parade on Friday, November 25. The Tennessee River will be filled with lighted boats, and onshore people can get into the holiday spirit with live music, reindeer and photos with Santa! This event is free for everyone.  

 

TVFCU has several upcoming events starting with sponsoring Ice on the Landing from November 18-January 29. Enjoy ice skating on the landing in the gardens of the historic Chattanooga Choo-Choo. Visit https://www.iceonthelanding.com/ for tickets and information. TVFCU will sponsor the CHI Lung bus with lung screenings at their Southside branch 125 West 20th Street on November 22.  

TVFCU will also host three Idea Leap Grant Pitch Competitions awarding $175,000 to entrepreneurs in 2023. These events will take place in Chattanooga, Cleveland and Dalton next year during National Small Business Week – the second week in May. Applications open on November 16 are available to small business owners within TVFCU’s 17-county service area. Visit tvfcu.com/idealeap for rules, more information and to apply.

  

Absolute Stone Design is hosting a holiday open house through November 25 in their showroom on West 25th Street, with notable deals including a free sink. Call 423-531-8185 for more details.

  

Finally, businesses can reserve their booths now for the 56th Annual Tri-State Home Show at the Chattanooga Convention Center Feb. 24-26. Thousand of current and potential homeowners attend every year! Call  (423) 624-9992 for more information.