The Chattanooga housing market continues to experience significant changes as homebuyers navigate changing priorities and a growing inventory of available homes. With a noticeable rise in new listings and steady buyer demand, the latest trends highlight how local factors align with national real estate patterns.
According to the National Association of Realtors’ “2023 Profile of Home Buyers and Sellers,” buyers moved a median distance of 20 miles to their new home last year, down from 50 miles the year before and closer to the previous norm of 15 miles.
Among those buyers surveyed, 60% said the quality of the neighborhood was the most important factor in deciding where to move, while proximity to friends and family and housing affordability came in at 45% and 39%, respectively.
Zooming in on the Chattanooga region, the local real estate market reflects its own unique shifts. For the week ending Oct. 5, the region saw a 16.7% increase in new listings, bringing more homes to the market, with a total of 342 new properties available.
In addition, pending sales saw a modest increase of 2.7%, signaling steady buyer activity, while inventory levels surged by an impressive 53.0%, reaching 2,979 homes.
September also brought some interesting insights. For starters, the median sales price remained stable at $319,950, which was unchanged from previous months. Also, days-on-market increased by 17.1% to an average of 41 days, reflecting slightly longer selling times as buyers take more time to weigh their options.
In addition, sellers saw a slight dip in the percent of original list price received, which decreased 1.4% to 95.4%, and the months-supply-of-inventory grew by 52.2% to 3.5 months, indicating a more balanced market that is slowly shifting toward favoring buyers.
What does all of this mean for buyers and sellers?
For buyers, the increased inventory and more time on the market suggest there might be more options and less pressure when choosing the right home. However, housing affordability remains a critical factor, and buyers will likely continue to focus on neighborhoods that offer both quality of life and proximity to loved ones.
Sellers might need to adjust their expectations slightly, as homes are taking longer to sell, and the percentage of the asking price received is dipping. Pricing homes correctly and ensuring properties are in great condition will be key in the current market environment.
Overall, the Chattanooga real estate market continues to experience growth, with more homes available for potential buyers while maintaining steady demand. As we move further into the year, it will be interesting to see how these trends evolve and what they will mean for the housing market in the region. #ThatsWhoWeR
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a multiple listing service that is one of approximately 600 MLSs in the country and that services more than 3,000 users. Local association membership is comprised of Realtors who are servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multi-family, property management and residential. Working alongside Realtors are our affiliate members, who represent related industries in sympathy with the objectives of the association. Our affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control, and insurance.