Chattanooga & National Housing Trends: What You Need To Know

As your local CENTURY 21 Prime South real estate professionals, we’re here to help you navigate the housing market, both in our vibrant city of Chattanooga and across the nation. Understanding these trends is key to making informed decisions, whether you’re buying, selling, or simply keeping an eye on the market.

National Real Estate Trends

The national real estate market is currently characterized by a more balanced, albeit still challenging, landscape. Here’s a snapshot of what’s happening:

• Prices Remain High: The median home price nationwide has continued to rise, reaching new record highs in some areas. However, the pace of appreciation is starting to slow down. While affordability remains a significant challenge for many buyers, home values are still appreciating, which is good news for current homeowners.
• Inventory Is Increasing: After years of a severe housing shortage, we’re finally seeing a gradual increase in the number of homes for sale. This gives prospective buyers more options and a bit more negotiating power, although many areas are still considered seller’s markets.
• Mortgage Rates are a Major Factor: High mortgage rates continue to be a primary challenge for homebuyers. Many buyers are waiting for rates to drop further, leading to slower sales activity compared to pre-pandemic levels. However, experts predict a more favorable outlook for the latter half of 2025, which could bring more buyers back into the market.

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Chattanooga’s Local Market: A Snapshot

Chattanooga’s real estate market has shown great resilience and continues to be a desirable place to live. While we mirror some national trends, our local market has its own unique characteristics.

• Strong Price Growth: The median sale price for a home in Chattanooga has seen a healthy increase over the past year. This is a testament to our city’s growing appeal and strong local economy, attracting buyers from across the country.
• A “Balanced” Market: While some data indicates a seller’s market, other metrics suggest a more balanced market, which means the supply and demand for homes are becoming more equal. This means buyers have more choices and time to make a decision, while sellers can still expect to get a strong return on their investment.
• More Homes, More Choices: Like the national trend, Chattanooga is seeing an increase in the number of homes for sale. This is a positive development for buyers who may have felt frustrated by the limited options in previous years.
• Days on Market are Up: Homes in Chattanooga are, on average, staying on the market for a bit longer than in recent years. This gives buyers more time to consider a property and conduct thorough inspections.

The Greater Chattanooga REALTORS® reports that the median sales price in Chattanooga saw a significant year-over-year increase, confirming that home values are holding strong. The demand for housing, driven by our city’s fantastic quality of life and lower cost of living compared to many other major metros, continues to fuel our market.