Homes in the Chattanooga area are selling for nearly 25% more money than they should based on past pricing, a new study shows.
Chattanooga area homes are selling for a 24.84% premium, putting the Scenic City as the 34th most overvalued housing market among the top 100 metro areas, according to a study by Florida Atlantic University and Florida International University.
Boise, Idaho, is No. 1 with homes selling for an 80.64% premium. Austin, Texas, is next with a 50.72% premium followed by Ogden, Utah, at 49.7%.
All of Tennessee’s four largest cities are in the top 37 nationally, figures show. Memphis is at No. 15 nationally with buyers paying a 34.6% premium. Nashville is at No. 31 with a 27.58% premium. Knoxville is No. 37 with a 23.99% premium, the study showed.
Dr. Ken H. Johnson, associate dean of graduate programs at FAU’s College of Business, said a low housing inventory in Tennessee and the state’s popularity for people relocating are reasons why the cities are clustered within the top 37.