Chattanooga is the fourth largest city in Tennessee. It is located in southeastern Tennessee, close to Knoxville and just across the river from Georgia. Chattanooga proper is home to nearly 200,000 people. However, the Chattanooga housing market includes its suburbs, meaning the Chattanooga real estate market actually includes around half a million people.
The Chattanooga housing market is the 169th largest housing market in the United States. The Chattanooga housing market is expected to remain strong in 2023. However, it is important to note that the Chattanooga housing market is shifting to a more balanced market in 2023. This means that the supply of homes for sale is increasing, and buyers are having more choices and more negotiating power.
Chattanooga Housing Market Report September 2023
In Chattanooga, the local market saw decreases in new listings and pending sales, along with rising prices and increased days on the market, according to the GREATER CHATTANOOGA REALTORS.
- New Listings: New listings decreased by 6.4% from September 2022 (1,204) to 1,127.
- Pending Sales: Pending sales were down by 9.3% from September 2022 (903) to 819.
- Inventory Levels: The number of available units shrank by 11.5% from September 2022 (2,244) to 1,986.
- Median Sales Price: Prices continued to rise, increasing by 5.0% from September 2022 ($306,500) to $321,900.
- Days on Market: The average number of days a property stayed on the market was up by 29.2% from September 2022 (24 days) to 31 days.
- Months Supply of Inventory: Buyers felt more empowered as the months supply of inventory increased by 4.5% from September 2022 (2.2 months) to 2.3 months.
Whether the Chattanooga housing market is a buyer’s or seller’s market depends on a number of factors, including the specific neighborhood, the type of home, and the overall condition of the home. However, in general, the Chattanooga housing market is shifting to a more balanced market in 2023, which means that it is becoming more favorable to buyers.
Chattanooga Housing Market Forecast 2023 & 2024
As of the most recent data available from Zillow, the average Chattanooga home value stands at $294,401. Over the past year, these values have seen a 3.2% increase, making it an attractive market for homeowners and investors alike. Homes in Chattanooga are in high demand, typically going pending in around 10 days.
Key Takeaways for Chattanooga
- Typical Home Values: The typical home in Chattanooga is currently valued at $294,401.
- 1-year Value Change: Chattanooga has experienced a positive value change of 3.2% over the past year.
These figures provide a snapshot of the current real estate scenario in Chattanooga, highlighting its growth and stability as an investment destination. The data is accurate as of September 30, 2023.
Market Overview
When looking at the market overview, it’s important to consider various metrics that shape the real estate landscape in Chattanooga. Let’s examine some key data points:
- Median Sale to List Ratio (August 31, 2023): This ratio stands at 1.000, indicating a balanced market.
- Percent of Sales Over List Price (August 31, 2023): A significant 47.4% of sales in Chattanooga are closed above the list price.
- Percent of Sales Under List Price (August 31, 2023): 10% of sales are negotiated below the list price.
- Median Days to Pending (September 30, 2023): Homes in Chattanooga are in high demand, with a median time of 10 days to go pending.
These metrics provide valuable insights for both buyers and sellers, helping them make informed decisions. The data reflects the real estate market’s vibrancy and competitiveness in Chattanooga.
Chattanooga MSA Housing Market Forecast
The Chattanooga Metropolitan Statistical Area (MSA) is an important region in Tennessee, and understanding its housing market forecast for 2023 and 2024 is crucial for both potential investors and homeowners.
As of October 31, 2023, the housing market in Chattanooga is expected to see a 0.3% increase in property values. This suggests a modest but positive trend, indicating that real estate in Chattanooga remains a stable and potentially lucrative investment.
By the end of December 2023, the market is projected to experience a slight uptick, with a 0.6% growth in property values. This indicates a strengthening housing market, making it an attractive period for those considering buying or selling property in the Chattanooga MSA.
The most significant forecasted growth is anticipated by September 30, 2024, with a substantial 3.4% increase in property values. This robust growth projection indicates that Chattanooga’s housing market is poised for expansion, potentially offering excellent opportunities for real estate investors and homeowners alike.
In summary, the Chattanooga MSA’s housing market forecast for 2023 and 2024 suggests positive and consistent growth. The initial modest gains in 2023 are expected to be followed by more significant growth in 2024, making it an appealing prospect for those looking to invest in real estate in this region.
Chattanooga, Tennessee’s real estate market is thriving, with rising home values and a competitive environment. The city’s picturesque surroundings, diverse neighborhoods, and strong economic prospects make it an attractive destination for homeowners and investors. As the data suggests, Chattanooga’s real estate market is on an upward trajectory, offering great opportunities for those looking to buy or sell property in this vibrant city.
Should You Invest in the Chattanooga Real Estate Market?
Population Growth and Trends
- Chattanooga, Tennessee, has been experiencing steady population growth and trends in recent years. The city’s attractive features, such as its natural beauty and affordability, have drawn people to the area.
- Population growth often indicates increased demand for housing, which can benefit real estate investors by ensuring a consistent pool of potential tenants or buyers.
Economy and Jobs
- Chattanooga’s economy has been diversifying, with growth in industries such as manufacturing, healthcare, and technology. The presence of major employers like Volkswagen and the city’s accessibility to major markets have contributed to job growth.
- A thriving job market is a significant factor for real estate investors, as it correlates with increased housing demand, rental income, and property appreciation.
Livability and Other Factors
- Chattanooga offers a high quality of life with an attractive cost of living. The city is renowned for its outdoor recreational opportunities, cultural amenities, and welcoming community, making it an appealing place to live.
- Factors like livability and a strong sense of community can lead to a stable and growing real estate market, as residents are likely to stay long-term and invest in homeownership.
Rental Property Market Size and Growth
- The rental property market in Chattanooga is substantial and shows potential for growth. The city’s population increase and job market expansion create consistent demand for rental properties.
- Rental properties provide real estate investors with the opportunity to generate passive income and potentially benefit from long-term property value appreciation, making Chattanooga an attractive location for rental investments.
Other Factors Related to Real Estate Investing
- Chattanooga’s real estate market has shown stability even during economic downturns. This resilience is valuable for investors looking for a secure investment environment.
- The city’s regulatory environment is conducive to real estate investors, with landlord-friendly laws and regulations that protect property owners.
- With various property types available, from single-family homes to multi-unit buildings and commercial properties, investors can diversify their portfolios in Chattanooga to align with their preferences and goals.
- Chattanooga’s strategic location, with access to major transportation hubs, enhances its desirability as a place to live and work. This connectivity contributes to the city’s real estate market’s long-term growth potential.
References:
- https://www.zillow.com/Chattanooga-tn/home-values
- https://www.gcar.net/consumer-tools/market-statistics
- https://www.realtor.com/realestateandhomes-search/Chattanooga_TN/overview
