Chattanooga, TN Housing Market Report

The Chattanooga real estate market is currently undergoing a notable transition toward a more balanced environment, increasingly favoring buyers compared to the frantic pace of previous years. As of December 2025, the median home value stands at $313,143, representing a modest year-over-year decline of 1.13%. This cooling is further evidenced by a significant 15% increase in active inventory, which now sits at 2,361 units. With more options available and homes spending an average of 72 days on the market—nine days longer than last year—the sense of urgency that once defined the Scenic City's housing market has largely dissipated.

Price trends over the last six months show a consistent, incremental softening. Since July 2025, values have dipped from $315,626 to the current December figure, reflecting a steady month-over-month contraction. This downward pressure on pricing is likely a result of the inventory surge meeting a more cautious buyer pool. Despite this, the sale-to-list ratio remains high at 0.99, suggesting that while sellers are no longer seeing massive bidding wars, homes are still selling very close to their asking prices when priced correctly for the current climate.

Looking ahead, the Chattanooga metro area remains a resilient market, particularly as the rental sector continues to show growth with a 1.62% year-over-year increase in median rent to $1,514. For buyers, the current landscape offers the best negotiating leverage seen in several years, with more time to conduct inspections and evaluate properties. Sellers, on the other hand, must be prepared for longer wait times and should prioritize competitive pricing and property condition to stand out among the growing number of active listings. The market appears to be stabilizing into a sustainable rhythm rather than facing a sharp correction.