May 2024 Chattanooga, Tennessee Real Estate Market Update
Welcome to the May 2024 real estate market update for Chattanooga, Tennessee! As we move into the warmer months, and officially kiss half of 2024 goodbye, let's take a closer look at where the market is moving, and why Chattanooga continues to be a great place for real estate investment.
Current Market Trends
According to the latest data from the National Association of REALTORS® (NAR), U.S. existing-home sales fell for the second month in a row, down 1.9% both month-over-month and year-over-year. This decline is observed across all four regions of the country, primarily due to higher borrowing costs and accelerating home prices, which are weighing on demand. Despite this national trend, Chattanooga's real estate market is showing resilience and opportunities for buyers and investors alike.
Chattanooga Market Highlights
New Listings: There has been a significant increase in new listings, up 25.0% to 1,466. This influx of new homes on the market provides more options for buyers and could help balance the supply-demand dynamics.
Pending Sales: Pending sales have risen by 13.1% to 986, indicating strong buyer interest and a healthy pipeline of transactions.
Inventory Levels: Inventory levels grew by 28.4% to 2,398 units. This growth in inventory is a positive sign, offering more choices for prospective buyers and easing some of the competitive pressures.
Median Sales Price: The median sales price has increased by 7.2% to $344,000, reflecting ongoing appreciation in home values and solidifying real estate as a sound investment.
Days on Market: Homes are selling faster, with the average days on market down 17.1% to just 29 days. This quick turnaround time highlights the high demand and attractive market conditions.
Months Supply of Inventory: The months supply of inventory is up 33.3% to 2.8 months. Although this is still below the balanced market threshold, it indicates improving conditions for buyers.
Despite the broader national trends, Chattanooga's real estate market remains robust and full of potential. Here are a few reasons why investing in Chattanooga real estate continues to be a smart decision:
Strong Market Fundamentals: The increase in new listings and inventory, coupled with rising pending sales, suggests a healthy and dynamic market. Buyers have more options, and sellers are still seeing strong interest in their properties.
Rising Home Values: The median sales price in Chattanooga continues to climb, reflecting strong appreciation and providing a solid return on investment for homeowners and investors alike.
Economic Growth: Chattanooga's economy remains vibrant, with ongoing investments in infrastructure, business development, and community projects. This economic stability supports a healthy real estate market and attracts new residents and businesses.
Quality of Life: Chattanooga offers a high quality of life with its scenic beauty, outdoor recreational opportunities, and vibrant cultural scene. The city’s amenities, combined with a relatively affordable cost of living, make it an attractive destination for homebuyers.
Resilient Demand: Even with national challenges, the local demand for homes in Chattanooga remains strong. The quick turnaround in days on market and increased pending sales indicate that buyers are actively seeking opportunities in this market.
Conclusion
While the national real estate market faces some headwinds, Chattanooga continues to shine as a prime location for real estate investment. With increasing listings, rising home prices, and a growing inventory, the market presents excellent opportunities for both buyers and investors. Whether you're looking to buy your first home, upgrade, or invest, Chattanooga's real estate market is well-positioned for continued growth and success.
Stay tuned for more updates, and feel free to reach out if you have any questions or need assistance with your real estate needs in Chattanooga!
Savannah Mello
Broker with the Henry B. Glascock Company