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 real estate market reflects its own unique shifts. For the week ending October 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.
The month of September also brought some interesting insights:
• Median Sales Price remained stable at $319,950, unchanged from previous months.
• 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.
• Sellers saw a slight dip in the Percent of Original List Price Received, decreasing 1.4% to 95.4%.
• The Months Supply of Inventory grew significantly by 52.2% to 3.5 months, indicating a more balanced market that is slowly shifting towards favoring buyers.
What Does This Mean for Buyers and Sellers?
For buyers, the increased inventory and more time on the market suggest there may 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 may 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