Chattanooga home prices and sales dropped last month from the record highs reached earlier this year as rising mortgage rates have begun to cool the red-hot real estate market.
The median price of the single-family homes sold by Chattanooga Realtors in August was $300,000, according to data from the multiple listing service of the Greater Chattanooga Association of Realtors. Although the typical price of homes sold in Chattanooga last month was up 11.1% from a year ago, the median price was still down from the record-high median price of $328,725 reached in Chattanooga during June.
Chattanooga’s median home price still remains below the U.S. median price of $356,700 in August, however, according to the National Association of Realtors.
The number of completed home sales in the Chattanooga area last month was down nearly 10% from a year ago. August was the third consecutive month of lower home sales than a year ago for Chattanooga Realtors.
Derek English, an affiliate broker for the Scout Realtor Group and president of the Greater Chattanooga Association of Realtors, said in a report that rising prices and mortgage rates have priced many buyers out of the market and made this summer “a season of change for the real estate market” after years of steadily rising sales and home values.