Chattanooga home prices, sales moderate in July

Staff photo by Olivia Ross / A "For Sale" sign advertises a Signal Mountain home on Aug. 15, 2022.

Chattanooga home prices and sales continued to outpace the national average this spring, but the local housing market appears to be slowing as higher interest rates and building costs squeeze more homebuyers out of the market.

A new report from the National Association of Realtors shows home sales and prices in the Chattanooga area rose faster than the U.S. average during the second quarter of the year. The median price for single-family homes sold in Chattanooga during April, May and June was up 17.8% from the previous year, while homes sold this spring at the quickest pace on record as many homebuyers sought to buy ahead of rising interest rates.

Chattanooga Realtor Jay Robinson, the top-selling real estate agent in Chattanooga last year, said the price and sales gains earlier in the year reflected "the last stampede to the door" to close sales before mortgage rates move higher under the Federal Reserve's well-publicized approach to steadily raising interest rates to slow the economy.