Chattanooga Housing Market Update: Where Prices, Inventory, and Rates Stand in November 2026
Chattanooga home prices are essentially flat year over year, inventory is up 16.8%, and the typical home now takes 56 days to sell — up nearly 22% from a year ago. That combination makes this the most balanced Chattanooga market in several years: sellers can still get a fair price, but they no longer set the terms, and buyers finally have both choice and negotiating room. The constraint is financing. Freddie Mac put the 30-year fixed average at 7.24% on October 29, 2026, more than a full point above the 6.17% of a year earlier.
Here is what the September 2026 numbers — the most recent full month reported by Greater Chattanooga REALTORS® — actually say, and what they mean if you are buying, selling, or waiting.
How much are homes selling for in Chattanooga right now?
The region's median sales price came in "dead even with last year" in September 2026, per the Greater Chattanooga REALTORS® monthly report. That is the headline most people miss: after several years of fast appreciation, Chattanooga has moved into a plateau, not a decline.
Different reporting layers measure different geographies:
Measure | Figure | Geography / period |
Median sales price | $355,000 (up $10,000 YoY) | Chattanooga MSA, Jan–Apr 2026 (Greater Chattanooga REALTORS®) |
Median sales price | $380,000 (down $5,000 YoY) | Hamilton County, Jan–Apr 2026 (Greater Chattanooga REALTORS®) |
Median sale price | $329,000 (up 9.6% YoY) | City of Chattanooga, latest month (Redfin) |
Median listing price | $399,000 | Chattanooga TN-GA metro, August 2026 (FRED/Realtor.com) |
Median days on market | 67 | Chattanooga TN-GA metro, September 2026 (FRED/Realtor.com) |
Two things to take from that table. The city of Chattanooga sits well below Hamilton County as a whole, because suburban and unincorporated inventory in Ooltewah, Apison, and Signal Mountain pulls the county median up. And the gap between a metro median listing price near $399,000 and actual sale prices in the $329,000–$380,000 range is the clearest evidence that asking prices are running ahead of what buyers are paying.
Is Chattanooga a buyer's market or a seller's market in November 2026?
It is a balanced market tilting toward buyers — and the months-supply figure is the cleanest way to see it.
Metric | September 2026 | Change vs. September 2025 |
New listings | 1,373 | +4.1% |
Pending sales | 797 | −2.9% |
Homes for sale (inventory) | 4,106 | +16.8% |
Days on market | 56 | +21.7% |
Months supply of inventory | 4.5 | +9.8% |
Source: Greater Chattanooga REALTORS®, September 2026 monthly report.
Four to six months of supply is the traditional definition of a balanced market. Chattanooga is at 4.5 months and climbing, with more homes coming on, fewer going under contract, and each one sitting longer. Nationally the picture is similar: NAR reported 4.9 months of supply in September 2026 and a median existing-home price of $429,100, up 1.6% year over year. Metro-wide, median days on market climbed from 53 in May 2026 to 67 in September 2026 — a steady slowdown through the summer selling season, not a one-month blip.
How does Chattanooga compare to Cleveland, TN and Dalton, GA?
If you are cross-shopping the three markets our offices serve, the price spread is significant — and so is the direction of travel.
Market | Median sale price | Year-over-year | Reporting period |
Chattanooga, TN | $329,000 | +9.6% | Latest month (Redfin) |
Cleveland, TN | $300,247 | −8.7% | September 2026 (Redfin) |
Dalton, GA | $259,828 | −7.2% | August 2026 (Redfin) |
Chattanooga is the only one of the three showing a year-over-year gain in the latest Redfin snapshot. Read that alongside the flat regional MLS median rather than instead of it: the city-limits sample is smaller and skews toward the lower price bands, so it swings harder than the region does. These are city-level figures from different reporting months — useful for comparison, not a substitute for a CMA on a specific address.
In practice: at 7.24% with 20% down, a median-priced home runs roughly $1,794 a month in principal and interest in Chattanooga, $1,637 in Cleveland, and $1,417 in Dalton. That Dalton-to-Chattanooga gap of about $377 a month is a real number for a commuter weighing a drive up I-75.
What does a 7.24% mortgage rate do to a Chattanooga payment?
Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed at 7.24% on October 29, 2026, down from 7.32% the prior week but up sharply from 6.17% a year earlier. The 15-year fixed averaged 6.60%.
On a $329,000 Chattanooga home with 20% down ($263,200 financed):
At 7.24%: about $1,794/month in principal and interest
At 6.17% (a year ago): about $1,607/month
Difference: roughly $187/month, or about $2,240 a year
With 5% down on that same price, principal and interest runs closer to $2,130 a month before taxes, insurance, and mortgage insurance.
This is why flat prices and higher inventory have not produced a buying frenzy — the rate is doing the work price increases used to do. It is also why a seller-paid rate buydown or closing-cost credit is often worth more to a buyer than $5,000 off the price.
Which Chattanooga areas are holding up best?
City-wide numbers hide a lot. Chattanooga is a market of micro-markets separated by ridges, rivers, and school zones, and here is what our agents are seeing on the ground:
North Shore and Red Bank (37405, 37415): Still the tightest submarket in the city. Walkability to Frazier Avenue, Coolidge Park, and Stringer's Ridge keeps demand steady; renovated bungalows under $500,000 move fastest.
East Brainerd (37421): The most consistent family-buyer corridor, driven by school zoning and quick access to I-75 and Hamilton Place. Verify school zone assignments in writing before you write an offer — the lines here do not follow neighborhood names.
Hixson and Middle Valley (37343): Highway 153 access and deep inventory of 1990s and 2000s subdivisions, generally undercutting East Brainerd per square foot.
Soddy-Daisy (37379) and Harrison (37341): Where price-per-square-foot shoppers land. More lot, longer commute, most sensitive to rate moves.
Downtown and Southside (37402, 37403, 37408): Condo and townhome supply has outgrown absorption. Days on market run longer than the city median; pricing discipline matters most here.
Lookout Valley and St. Elmo (37409, 37419): Lookout Mountain and Incline Railway proximity support the top of the range, on inventory thin enough that one or two sales swing the average.
One warning for county buyers: sewer and septic capacity still shapes what can be built east of the city, and in July 2026 the Hamilton County Commission approved a six-month moratorium on new data center proposals in unincorporated areas. If you are buying acreage out Highway 58 or toward Apison, ask what is zoned next door before you close.
What is driving demand in Chattanooga heading into 2027?
The job market is the honest answer to whether this plateau holds.
At its annual meeting on October 24, 2026, the Chattanooga Area Chamber of Commerce reported more than $40 million in capital investment and 545 announced new jobs over the past year — including Master Machine's expansion in nuclear, defense, and energy components (45 jobs) and Valerie Health moving its 200-employee hub downtown with 100 more jobs projected by year end. EPB and Vanderbilt University launched an Institute for Quantum Innovation with a planned quantum campus, and United Airlines added Newark and Houston service from Chattanooga Metropolitan Airport this year.
The counterweight: UT Chattanooga's Center for Regional Economic Research projected roughly 3,200 new jobs for 2026 — about half of what the region considers a strong year — after the area lost about 1,000 jobs in 2025, with manufacturing shedding more than 1,000. Anchor employers like Volkswagen, BlueCross BlueShield of Tennessee, Erlanger, Unum, TVA, and McKee Foods in Collegedale hold the base steady, but net growth is modest. Modest job growth plus 7%-plus mortgage rates is exactly the recipe for flat prices and slower absorption.
What should Chattanooga sellers and buyers do this fall?
Sellers: Price to the comps closing now, not to spring asking prices — the $399,000 metro median list price versus mid-$300,000s sale prices is the aspiration gap, and overpricing in a 4.5-month market costs you the first three weeks of showings, when most of your buyer pool sees the listing. Budget for 56-plus days in your move timeline and carry costs. Offer a rate buydown or closing-cost credit rather than waiting on a price cut. And repair the obvious inspection items before listing — with this much inventory, buyers walk instead of renegotiating.
Buyers: Negotiate, because it works again — repairs, closing costs, and buydowns are all on the table in a way they were not in 2021–2023. Shop multiple lenders every time; the weekly move from 7.32% to 7.24% was worth real money, and lender-to-lender spreads can be worth more. Watch days on market, not just list price: a home sitting past 60 days in a 56-day market is your best negotiating candidate. And compare all three markets — that roughly $377 monthly gap between Chattanooga and Dalton deserves a look if your commute allows it.
Chattanooga housing market FAQ
Are home prices going down in Chattanooga?
No. The Greater Chattanooga REALTORS® September 2026 report shows the regional median sales price flat — "dead even with last year." Nearby Cleveland, TN (−8.7%) and Dalton, GA (−7.2%) have seen year-over-year declines, but Chattanooga itself has plateaued rather than fallen.
How long does it take to sell a house in Chattanooga?
The median was 56 days on market in September 2026, up 21.7% from a year earlier. Metro-wide, median days on market reached 67 in September 2026, up from 53 in May 2026.
Is now a good time to buy a house in Chattanooga?
It is a better time to negotiate than it has been in years: inventory is up 16.8% and supply sits at 4.5 months. The tradeoff is financing cost, with 30-year rates at 7.24% as of October 29, 2026 — about $187 a month more on a median-priced home than a year ago.
What is the median home price in Hamilton County, TN?
Greater Chattanooga REALTORS® reported a Hamilton County median sales price of $380,000 for January through April 2026, down about $5,000 from the same period in 2025, versus $355,000 for the broader Chattanooga MSA.
Is Chattanooga cheaper than Cleveland, TN or Dalton, GA?
No — Chattanooga is the most expensive of the three. The latest Redfin city medians are $329,000 for Chattanooga, $300,247 for Cleveland, and $259,828 for Dalton.
How many homes are for sale in Chattanooga?
Greater Chattanooga REALTORS® counted 4,106 homes in inventory across the region in September 2026, a 16.8% increase over September 2025.
Talk to an agent who reads the whole market, not just the headline
A regional median tells you almost nothing about your street. Pricing a home in East Brainerd, a condo on the Southside, and acreage in Soddy-Daisy are three different jobs — and in a 4.5-month, 56-day market, pricing is the whole ballgame.
Realty ONE Group Experts has offices in Chattanooga, TN; Cleveland, TN; and Dalton, GA, so we price and negotiate across all three markets every week, including the Tennessee-versus-Georgia closing cost and transfer tax differences that catch cross-border buyers off guard.
Planning a spring listing, trying to buy before rates move again, or just want an honest read on what your home would bring today? Contact Realty ONE Group Experts for a current comparative market analysis.
Sources
Connie Brewer: September Housing Market Report — Chattanoogan.com, October 15, 2026 (Greater Chattanooga REALTORS® September 2026 data; NAR national figures)
Freddie Mac Primary Mortgage Market Survey, October 29, 2026
Housing Inventory: Median Days on Market in Chattanooga, TN-GA (CBSA) — FRED
Housing Inventory: Median Listing Price in Chattanooga, TN-GA (CBSA) — FRED
Realtors push back after study ranks Chattanooga among most overpriced housing markets — Local 3 News (Greater Chattanooga REALTORS® MSA and Hamilton County medians)
Chattanooga, TN housing market — Redfin
Cleveland, TN real estate — Redfin
Dalton, GA housing market — Redfin
At annual meeting, Chattanooga chamber encourages collaborative growth — Chattanooga Times Free Press, October 24, 2026
Chattanooga projected to gain 3,200 jobs in 2026 — NewsChannel 9 (UTC Center for Regional Economic Research)
2026 Data Center Impact Report — Greater Chattanooga REALTORS®, September 10, 2026 (Hamilton County data center moratorium)
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