The charming city of Chattanooga, nestled in the heart of Tennessee, offers a unique blend of scenic beauty, vibrant culture, and a thriving housing market. Whether you're considering buying or selling a home in this region, understanding the current state of the Chattanooga housing market is crucial. In this blog post, we'll explore the latest trends and insights into the Chattanooga housing market, helping you make informed decisions in this somewhat competitive environment.

Chattanooga Housing Market Overview

The Chattanooga housing market has been buzzing with activity. On average, homes in Chattanooga receive three offers and sell within approximately 41 days. Last month, the median sale price of a home in Chattanooga reached $337,000, marking an impressive 10.8% increase compared to the previous year. Additionally, the median sale price per square foot in Chattanooga stands at $196, showing a substantial 12.6% uptick from last year.

Chattanooga vs. National Averages

Compared to the national average, Chattanooga's housing market offers affordability, with the median sale price being 20% lower. This attractive pricing has contributed to the city's desirability among homebuyers and investors. Furthermore, the overall cost of living in Chattanooga is 7% lower than the national average, making it an appealing destination for those seeking an exceptional quality of life.

Competitive Landscape

Chattanooga's housing market can be described as somewhat competitive. Homes tend to sell within 41 days, which indicates a healthy pace of transactions. The Redfin Compete Score™ for Chattanooga stands at 54, reflecting the market's moderate competitiveness. Some homes receive multiple offers, and on average, homes sell for about 1% below the list price, highlighting the importance of strategic pricing and negotiation.

Chattanooga Migration & Relocation Trends

Chattanooga's allure extends beyond its housing market. In the period from June '23 to August '23, 28% of homebuyers in Chattanooga contemplated moving out of the city, while 72% aimed to stay within the metropolitan area, showcasing the strong local appeal.

  • Inbound Migration: Nationally, 0.26% of homebuyers considered moving into Chattanooga from outside metropolitan areas. Notably, Atlanta homebuyers expressed the highest interest in relocating to Chattanooga, followed by Los Angeles and Chicago.

  • Outbound Migration: Among Chattanooga homebuyers, 72% intended to stay within the Chattanooga metropolitan area. Knoxville emerged as the top destination for those looking to move away, followed by Panama City and Myrtle Beach

The Chattanooga housing market presents a dynamic landscape, characterized by increasing home values and a moderate level of competitiveness. With attractive pricing compared to national averages and a strong local appeal, Chattanooga continues to be a sought-after destination for both residents and newcomers. Whether you're considering buying or selling a home, staying informed about the latest market trends and insights is key to making sound real estate decisions in this vibrant Tennessee city.

It is up to the buyer to do their due dilligance to verify all information is correct and accurate.

Redfin. (n.d.). Chattanooga Housing Market: House prices & trends | RedFin. Redfin. https://www.redfin.com/city/3641/TN/Chattanooga/housing-market