How is the current housing market?

With Chattanooga’s real estate trends evolving alongside national trends, how can buyers and sellers find success? The answer lies in understanding the market’s key dynamics, anticipating potential challenges, and working with the right experts to guide you. Whether you’re buying your dream home, selling a cherished property, or seeking the ideal investment opportunity, Chattanooga offers a stable, promising environment for real estate enthusiasts.

Jay Hudson Homes – Keller Williams and Jennifer Grayson, Broker, Keller Williams Greater Chattanooga unpack the current real estate trends of Fall 2024 shaping the local Chattanooga market and offer actionable advice to navigate it successfully.

Snapshot: Understanding the Current Real Estate Trends

To make informed decisions, it’s important to start with the facts. Here’s a quick look at Chattanooga’s real estate performance as of September 2024:

New Listings
1,563 properties

Homes Sold
979 homes
found new owners.

Average Days on Market
49 days on the market

Inventory
3,000 active listings, Chattanooga currently has a 3-month absorption rate,
signifying a seller’s market.

Key Takeaway:

This stability makes Chattanooga unique. Unlike larger cities like Nashville, where rapid price swings are common, Chattanooga’s steady growth provides a balanced, less volatile environment.

Current Real Estate Trends Nationally and Their Local Impact

While real estate is inherently local, national real estate trends do influence the Chattanooga market. Let’s explore how broader economic factors come into play.

Interest Rates: A Historical Perspective

Current mortgage rates stand at an average of:

  • 30-Year Fixed: ~6.75%
  • 15-Year Fixed: ~5.89%

While some may consider these rates high compared to the lows of 2021, a broader perspective shows they’re still favorable. Between 1971 and 2024, average mortgage rates were 7.72%, with peaks as high as 18.63% in 1981. Please note interest rates may adjust daily/weekly, please reach out to your lender to get the most up-to-date rates.

Chattanooga’s Unique Appeal

Chattanooga’s affordability and lack of a state income tax are attracting buyers from other regions. Its steady, sustainable growth avoids the volatility seen in more metropolitan markets, making it an ideal location for both families and investors.

Overcoming Challenges in the Current Real Estate Market

Real estate transactions can be complex, especially in a shifting market. Here’s how buyers, sellers, and investors can address their unique challenges with today’s real estate trends.

For Buyers: Affording Your Dream Home

With interest rates higher than recent years, affordability may feel like a hurdle. However, there are ways to stay ahead:

  • Save for a Larger Down Payment: A 3-5% down payment improves your negotiating position.
  • Adjust Your Expectations: Consider scaling down to a smaller property or fewer features if necessary.
  • Leverage Financial Programs: Many lenders offer loans with favorable terms or down payment assistance.

Buyers on the fence often cite uncertainty about rates or the upcoming election. A skilled realtor can help dispel fears and highlight opportunities.

For Sellers: Standing Out in a Competitive Market

In a seller’s market, buyers still expect value. Sellers can stay competitive by:

  • Preparing for Success: Showcase your home like a model property by decluttering, repairing, and improving curb appeal.
  • Collaborating with a Realtor: Real estate professionals provide critical insights into pricing and staging to attract offers quickly.
  • Responding to Market Sentiment: Transparency about pricing and value builds trust, encouraging faster sales.

For Investors: Maximizing ROI

Investors remain active in Chattanooga, drawn by the potential for strong returns. To navigate this market successfully with the current real estate trends:

  • Define Clear Criteria: Know your target area, price range, and ROI expectations.
  • Rely on Local Expertise: Work with professionals who understand Chattanooga’s neighborhoods and market dynamics.
  • Evaluate Long-Term Trends: Slow, steady growth positions Chattanooga as a reliable market for long-term investments.

Why Chattanooga is Ideal for Buyers, Sellers, and Investors

Unlike many national markets marked by sharp ups and downs, Chattanooga’s real estate market remains consistent and dependable. This “slow and steady” growth means:

  • Buyers benefit from stable prices and increasing inventory.
  • Sellers can leverage Chattanooga’s desirability to attract serious offers.
  • Investors find long-term value in a community-oriented market with growing demand.

With more people moving in than out, Chattanooga continues to offer opportunities for all types of real estate endeavors.

Actionable Advice for Success With Chattanooga’s Current Real Estate Trends

For Buyers
  • Start with a realistic budget and savings plan.
  • Partner with a knowledgeable realtor to streamline the process and access vetted listings.
  • Keep an open mind about refining your wish list to find the best home within your means.
For Sellers
  • View your home through a buyer’s eyes.
  • Address minor repairs, stage your property, and create a welcoming atmosphere.
  • Price competitively with guidance from a professional.
For Investors
  • Identify your ideal neighborhoods and target metrics (price and ROI).
  • Be prepared to act quickly on properties that meet your criteria.
  • Stay informed about local developments affecting demand.

Navigating Chattanooga’s Real Estate Trends

Successfully navigating Chattanooga’s real estate trends requires three things: understanding the trends, addressing challenges proactively, and partnering with an experienced, trustworthy realtor. At Jay Hudson Homes, we believe in turning transactions into lasting relationships, offering you the expertise, support, and local insights you need to achieve your goals.

Are you ready to take the next step?
Contact us today 423-702-0116 to find your perfect home, sell with confidence, or invest wisely.

How’s business?

Great! The Chattanooga real estate market remains robust and reliable. With ongoing economic development, a thriving and diverse job market, and abundant opportunities for an enriching lifestyle, Chattanooga is well-positioned to maintain its strength and stability for the foreseeable future.

What makes Chattanooga’s real estate market different from other cities in Tennessee?

Unlike larger cities like Nashville, Chattanooga’s real estate market is characterized by slow and steady growth. This stability means fewer price swings, making it an ideal choice for families, retirees, and investors seeking reliable long-term value.

Is Chattanooga currently a buyer’s or seller’s market?

Chattanooga is experiencing a seller’s market with a three-month inventory of homes available. However, the real estate trends remain steady and balanced, offering opportunities for both buyers and sellers.

What steps should buyers take to navigate higher interest rates?

Buyers should:
1. Save for a larger down payment (3-5% of the purchase price).
2. Work with a lender to explore programs offering favorable terms.
3. Consider refinancing if rates drop in the future.