The median price of homes sold in the Chattanooga area rose last month to an all-time high of $344,000, or nearly double the typical price of Chattanooga homes sold seven years ago, according to the Greater Chattanooga Realtors.
Chattanooga homes, on average, are still priced more than 20% below the U.S. average, however, drawing more homebuyers and investors to the Chattanooga market, including many retirees and remote workers.
The National Association of Realtors won’t release comparable May sales figures for the entire country until next week. But Redfin, a residential real estate brokerage and mortgage origination service, said last week that the median home sale price nationwide rose in May to $439,716, also a record high.
Although mortgage interest rates have doubled from their pandemic lows three years ago, home prices in Chattanooga have continued to rise with the inventory of homes on the market, which is still relatively limited compared with demand.
In her monthly report on the local housing market, Greater Chattanooga Realtors President Kadi Brown said Chattanooga “is experiencing a thriving real estate market” with “significant growth and dynamic changes.”