Welcome to Chattanooga in 2024, a city where the real estate scene is buzzing with change! The Chattanooga real estate market has evolved, gone are the days of the one-sided seller’s market. This market isn’t just shifting; it’s transforming, offering a balanced playing field for homebuyers and investors. Here, opportunities abound in one of Tennessee’s most dynamic cities, where the average home price has stabilized at around $287,863.
Chattanooga, Tennessee’s housing market stands out as a beacon of opportunity in a sea of fluctuating real estate trends. As the 169th largest market in the United States, Chattanooga offers a balance of affordability and growth potential that is hard to ignore. Whether you’re a first-time buyer or a seasoned investor, Chattanooga’s market dynamics offer a compelling case for why this city should be on your radar.
The Buyer’s Market Advantage
Currently leaning towards a buyer’s market, Chattanooga provides an edge for those looking to purchase a home. The combination of available homes, moderate competition, and the ability to secure properties at or slightly below the list price is a boon for buyers. This is particularly compelling when you consider that Chattanooga’s median sale price is a remarkable 23% lower than the national average.
Chattanooga’s Desirable Location
Chattanooga is not only the fourth largest city in Tennessee but also a hub of activity and growth. Nestled in the southeastern part of the state, close to Knoxville and the Georgia border, it boasts a population of nearly 200,000 within the city limits and approximately half a million when including the suburbs. This demographic presence suggests a robust and diverse real estate market.
Market Trends and Insights
The Chattanooga housing market shows a balanced landscape where homes receive an average of 2 offers and sell within about 51 days. The median sale price for homes recently hit $310K, a 6.9% increase from last year. However, a slight dip in the median sale price per square foot indicates a nuanced market where buyers can still find value.
Competition and Inventory
With homes typically selling for 1% below list price and hot homes going pending in 29 days, the market is competitive but not overwhelming. The current inventory and new listings suggest that there is a good match between supply and demand, influenced by migration and relocation trends within the region.
Chattanooga’s Economic Outlook
The city’s economy is diversified with notable growth in manufacturing, healthcare, and technology sectors. Presence of major employers and accessibility to larger markets contribute to a healthy job market, which in turn supports a robust housing market.
Future Market Projections
Looking ahead, the Chattanooga housing market shows signs of continued strength. Zillow’s forecast, as of January 31, 2024, projects a 6.1% increase in home values by January 31, 2025. This growth trajectory bodes well for long-term investment and highlights Chattanooga’s potential for both homebuyers and investors.
Key Metrics for Homebuyers and Investors
- Average Home Value: $287,863 (5.3% increase over the past year)
- Days to Pending: 22 days (indicating a brisk pace for transactions)
- For Sale Inventory: 712 homes (as of January 31, 2024)
- New Listings: 196 homes (as of January 31, 2024)
- Median Sale to List Ratio: 0.991 (as of December 31, 2023)
- Median Sale Price: $320,000 (as of January 31, 2024)
- Median List Price: $364,683 (as of January 31, 2024)
- Percent of Sales Over List Price: 18.6% (as of December 31, 2023)
- Percent of Sales Under List Price: 55.0% (as of December 31, 2023)
Chattanooga MSA Housing Market Forecast
The Chattanooga Metropolitan Statistical Area (MSA) housing market forecast further emphasizes the city’s attractiveness for potential homebuyers and investors, with predictions of steady growth over the coming year.
The Verdict: To Buy or Invest?
The data and forecasts are clear—Chattanooga’s housing market is on an upward trajectory, making it an opportune time to consider buying or investing. With its high quality of life, affordable cost of living, and a strong job market, Chattanooga is poised for continued growth. For those pondering their next move in real estate, Chattanooga offers a blend of immediate advantages and long-term potential that is hard to pass up.
Your Journey starts with Julie Fisher
For more detailed insights and personal consultation tailored to your real estate needs, begin your Chattanooga real estate journey with Julie Fisher at your side. As a trusted real estate expert in Chattanooga, she can guide you through every step of the process, ensuring that you make the most informed decision in this thriving market. Whether you’re eyeing a charming downtown loft or a spacious suburban abode, Julie’s expertise will pave the way to your ideal property.
Ready to take the leap? Connect with Julie Fisher today and transform your real estate aspirations into reality.