Chattanooga Housing Market Forecast — Remainder of 2025
If you've been tracking Chattanooga real estate, you’ve already seen shifts this year. But what’s on the horizon? From home prices to mortgage rates, here’s the latest expert outlook—and what it means for local buyers and sellers.
1. Home Prices: Modest Growth, Not Decline
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Current Values: As of June 2025, Chattanooga’s average home value sits at approximately $327,900, remaining flat year‑over‑year.
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Recent Upward Momentum:
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Downtown median sold price rose 8.6% YoY to $499,500 by June 2025
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Plaza‑wide (Hamilton County) median prices jumped 9–10% YoY—$345K in Dec 2024, rising to $365K
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Forecast vs. Reality: Nationally, home prices are expected to climb ~1.5–2.5% in 2025. Local trends in Chattanooga mirror this steady, moderate growth—strong but not unsustainable.
Key Takeaway: Expect continued, moderate appreciation—no crash, but no massive spikes either. Markets like downtown show pockets of stronger gains, while broader Chattanooga stabilizes around 2–3%.
2. Mortgage Rates: Expected to Ease Slightly
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National Trends: Rates entered 2025 in the 6%–6.5% range. Forecasts from Fannie Mae and others predict slight further easing, potentially 5.7–6.0% by year’s end MarketWatch.
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Chattanooga Outlook: Lawrence Team Homes experts anticipate that local mortgage rates will trend downward, benefiting affordability without dramatic jumps at lawrenceteamhomes.com.
Key Takeaway: Yes, rates may dip—but likely hover in the mid‑6% range through 2025. A big plunge (e.g., 4%) is unlikely absent major economic shifts.
3. Inventory & Sales Pace: More Options, Still Active Market
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Rising Inventory: Chattanooga’s active listings grew 2.7% MoM to 1,897 in June 2025, with a stronger 41% YoY rise reported earlier in the year.
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Sales Activity: June saw 406 homes sold/pending (–10% MoM)
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Home Sales Speed:
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Average sale time: ~34 days (up only slightly from 33 days YoY).
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Downtown homes average 31 days—59.7% faster than last year.
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Key Takeaway: Buyers will enjoy more choices—with somewhat longer decision windows. Sellers still benefit from brisk sales, especially in hot micro‑markets like downtown.
🔍 What This Means for You
| 🎯 Role | What to Know |
|---|---|
| Buyers | Take advantage of more inventory and stable rates. Lock in before potential rate hikes, and price your offer competitively—especially for mid-6% rates. |
| Sellers | Still a seller’s market overall, though more balanced than earlier years. Downtown pockets remain the strongest. Price smart and list with confidence. |
| Investors | Moderate appreciation (2–3%), steady sales pace, and easing rates create a solid opportunity backdrop. |
| Lawrence Team Insight | Local micro-trends vary: downtown outperforms, suburbs moderate. Regional expertise ensures tailored strategy and timing. |
🔮 Final Takeaway
Chattanooga's housing market is entering a season of moderation, steady price growth, lower mortgage rates than 2023, and healthier inventory levels. It’s far from a meltdown; instead, it offers realistic opportunities for homebuyers, sellers, and investors alike.
If you're considering making a move—whether buying, selling, or investing—let’s build a strategy tailored to your goals. Lawrence Team Homes is here to guide you through Chattanooga’s evolving market in 2025.
