The Chattanooga housing market is the 169th largest housing market in the United States. The Chattanooga housing market is expected to remain strong in 2024. For prospective homebuyers and sellers, the burning question is whether Chattanooga tilts towards a buyer's or seller's market. The answer lies in the equilibrium between supply and demand.
With a median sale price lower than the national average, Chattanooga offers an enticing landscape for buyers seeking affordability. However, sellers also benefit from a market where hot properties can command their worth swiftly.
How is the Chattanooga Housing Market Doing in 2024?
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.
Chattanooga is experiencing a dynamic housing market in 2024. The market is characterized by a conglomeration of rising home prices, fluctuating home sales, and persistent demand outweighing supply. Let’s dive deeper into the specifics to understand how the Chattanooga housing market is performing this year.
Chattanooga Home Prices
What is the Average Home Price?
The average home price in Chattanooga, TN, is approximately $308,937, reflecting a 5.5% increase over the past year, according to Zillow.
Median Sales Price
The median sales price, which offers a better representation of the middle point of homes sold, stands at $327,586, demonstrating a 2.8% rise from last year.
Median List Price
The median list price in Chattanooga hovers around $380,000. This measure is crucial as it showcases the price at which homeowners are putting their properties on the market.
Are Home Prices Dropping in?
Contrary to any predictions of a drop, home prices in Chattanooga remain steady or are slightly rising. It’s important to note that Chattanooga continues to see an upswing, underlining robust demand in the area.
Chattanooga Home Sales
How did the housing market perform in the last month?
In June 2024, the Chattanooga real estate market showed 1,507 homes for sale, which is a 0.3% increase compared to May 2024, as reported by Rocket Homes.
How many homes were sold?
As per Realtor.com, the number of homes sold in Chattanooga has remained stable. Homes are, on average, selling at their asking price.
Did home sales drop or rise compared to the same month last year?
Compared to the same month last year, the figures illustrate a modest increase in home sales, signaling a resilient market despite economic fluctuations.
Chattanooga Housing Supply and Demand
The housing supply in Chattanooga, as of June 2024, was at 949 homes for sale in Hamilton County. There is a noticeable imbalance with a relatively high demand continuously outstripping supply. Here’s a snapshot of the key data:
| Measure | Data |
|---|---|
| Homes for Sale | 949 units |
| Median Sales Price | $327,586 |
| Median List Price | $380,000 |
The persistent high demand is demonstrating Chattanooga’s strong attraction for homebuyers, investors, and even renters.
Is Chattanooga a Seller's Real Estate Market?
Indeed, Chattanooga is considered a seller’s market in 2024. This categorization stems from several factors:
- Limited Inventory: With less than 1,000 homes available, the inventory shortage drives home prices upward.
- High Demand: The city’s scenic beauty, improved infrastructure, and rising employment opportunities continue to draw new residents.
Is Chattanooga a Good Real Estate Market for Investors?
Chattanooga offers promising opportunities for real estate investors due to its growth trajectory:
- Appreciation Rates: The steady increase in home values (e.g., 5.5% year-on-year) suggests healthy long-term returns.
- Rental Demand: The city's expanding population and economic development create a fertile ground for rental investments.
- Market Forecast: Long-term forecasts predict a continual rise in property values, making it a lucrative option for strategic investors.
In summary, the Chattanooga housing market in 2024 represents a robust seller's market characterized by rising home prices, steady sales, and limited supply against a backdrop of growing demand.
Chattanooga Housing Market Predictions
The housing market in Chattanooga, TN, like many other regions across the United States, is subject to a variety of influences ranging from economic indicators to local supply and demand dynamics. Here, we delve into detailed predictions for the Chattanooga Metropolitan Statistical Area (MSA) for June 2024, the next quarter, and a forecast extending to May 2025.
The following table presents a forecast of price changes for the Chattanooga housing market, alongside the respective predictions for mid-2024, the next quarter, and the year 2025:
| Region Name | Region Type | State Name | Base Date | 30-06-2024 | 31-08-2024 | 31-05-2025 |
|---|---|---|---|---|---|---|
| Chattanooga, TN | msa | TN | 31-05-2024 | 0.3 | 0.2 | 0.4 |
June 2024 Forecast
For June 2024, the housing market in Chattanooga is forecasted to experience a 0.3% growth. This modest increase highlights a steady upward trend in home values. The continued local economic growth, coupled with persistent demand, drives this forecasted appreciation.
Next Quarter Forecast (August 2024)
Moving into the next quarter, ending in August 2024, the market is predicted to rise by 0.2%. While this is a slight deceleration compared to June, it indicates sustained positive momentum. This slight deceleration could be attributed to seasonal variations and potential adjustments in buyer behavior.
Annual Forecast (May 2025)
Looking further ahead to May 2025, the Chattanooga housing market is projected to grow by 0.4%. This forecast adopts a more optimistic stance, reflecting expectations that economic factors and ongoing demand will continue to bolster the market.
Will it Crash or Boom?
To address one of the critical questions for current and prospective homeowners and investors: Will the Chattanooga housing market crash or boom?
Indicators Pointing Away from a Crash:
- Steady Appreciation Rates:
- The projected consistent growth rates of 0.3% (June 2024), 0.2% (August 2024), and 0.4% (May 2025) display resilience.
- Economic Stability and Job Market:
- Chattanooga's employment rates and local economy remain robust, which supports steady housing demand.
- Supply and Demand Dynamics:
- Continued high demand relative to limited supply means housing prices are underpinned by strong fundamentals.
Considerations Against a Boom:
While a prolific boom similar to some peaks preceding economic downturns isn't forecasted, Chattanooga's market is sufficiently buoyant to offer significant returns without reaching unsustainable heights.
Balanced Growth Pathway:
- Chattanooga's housing market is leaning more towards a path of balanced growth rather than experiencing extremes of a crash or an explosive boom.
- The prevailing conditions of healthy job market performance, attractive living conditions, and manageable price escalations make Chattanooga an appealing and relatively stable market.
In conclusion, Chattanooga’s housing market in 2024 and looking towards 2025 is projected to experience steady growth with moderate price appreciation. It stands resilient with no imminent signs of a crash and a tempered outlook for a dramatic boom. This balanced scenario provides a fertile ground for both homeowners looking to enter a stable market and investors seeking steady returns on their investments.
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.
