The Chattanooga Real Estate Market Gains Momentum with the Return of Buyers

Real estate activity is picking up momentum in Chattanooga, Tennessee, with both local residents and newcomers to the city showing renewed interest in housing opportunities, including a growing number of foreclosed properties.

According to Becky Cope English, managing partner at The Agency Chattanooga, the local real estate market is steadily regaining ground.

English shared that while the city experienced a slight slowdown last year, the current trend more closely resembles what she considers a balanced and healthy market following the rapid pace during the COVID-19 pandemic boom.

English added that the increase in interest rates made things more difficult for some buyers last year, as the average rate for 30-year mortgages hovered around 6.9% throughout 2024.

English also believes that 2025 and 2026 could be excellent years in Chattanooga and likely across the United States as well. She highlights Tennessee’s reputation as a place that attracts businesses and entrepreneurs thanks to its favorable policies. “The state has made it easier to live, work, and enjoy life here, as we have no state income tax—only a sales tax—which helps.”

The cost of living, lower than in many large metropolitan areas, is another draw, as are the city’s charm and lifestyle.

According to Greater Chattanooga Realtors, there are currently around 2,800 homes for sale in the Chattanooga area, with inventory increasing month by month. The average home price in January was $330,000, with an estimated increase of 2% to 3% over the course of the year.

According to Fannie Mae forecasts, mortgage rates could drop to 6.5% by the end of 2025 and decline to around 6.3% by the end of 2026.

English concludes by saying that consumer confidence is the missing ingredient. “When people start feeling confident again, we’ll see movement. That’s how affordability improves: more buyers, more activity, and even some foreclosure opportunities for those looking for good deals.”

Available foreclosures:

Chattanooga: 142 homes available

Nashville: 213 homes available

Knoxville: 89 homes available

Atlanta: 367 homes available

Asheville: 54 homes available

By Elías DaSilva | 28 de Mayo de 2025