North Chattanooga Real Estate Market Prices, Trends, and Forecast 2023

North Chattanooga Real Estate Market Prices, Trends, and Forecast 2023

Residents of North Chattanooga love the natural landscape of this quaint and charming neighborhood. With excellent weather, friendly and welcoming people, a lower-than-average cost of living, and numerous upscale bars, breweries, and restaurants, it is no wonder the North Chattanooga real estate market continues to increase in popularity. You will often see bikers, walkers, and runners taking advantage of the 13-mile paved trail alongside the Tennessee River.

Over the past few years, the Northside neighborhoods have experienced a new level of revitalization and investment, translating to luxury retail shops, renovated housing, and plenty of fine dining to satisfy your taste buds. Cultural and entertainment opportunities abound with dramas, comedies, musicals, and more at the Chattanooga Theater Centre. Explore numerous local parks such as Dupont Park, Greenway Farm Park, or Booker T. Washington State Park. But first, learn about the market prices, trends, and forecasts in the North Chattanooga area.

2023 housing market projections

When exploring the housing market outlook for 2023, one must analyze home values and identify trends, discuss the effect of interest rates on the real estate market, pinpoint investing indicators, and consider how population trends are impacting the current real estate landscape.

Home values affected by inventory levels

In the past year, homeowners sold 498 homes in the 37405 zip code encompassing Chattanooga and North Chattanooga. With a total of 6,923 homes in this zip code, the median home value in this area is $414,053. Per the National Association of Realtors, Chattanooga is experiencing a slowing of price growth; however, prices are still trending higher than a year ago.

The median sales price in this area dipped from May 2022 to April 2023. This downward trend could reflect the number of homes sold decreasing during this same time. In June 2022, homeowners sold 55 homes; in May 2023, homeowners only sold 43 homes. The tight inventory experienced in the rest of the country also occurs in North Chattanooga. More people want to buy in this area than there are at home. And current residents are holding onto their properties for longer, exacerbating the inventory trend.

Rising interest rates

Interest rates continue their volatility and impact on the real estate market throughout the country. At the end of 2022, interest rates came in above seven percent but began to decline at the start of 2023. Freddie Mac, the nation’s largest mortgage finance provider, reported a 30-year fixed-rate mortgage dropped in the first quarter of 2023 to 6.36%. This was great news since the rate was 6.69% for the previous quarter. Unfortunately, rates are still much higher than last year’s rate of 3.79%.

The National Association of Realtors predicts rates will continue to vary. However, inflation should decline, and the Federal Reserve has already decided to pause rate hikes for now. Therefore, the National Association of Realtors expects mortgage rates to fall around the six percent mark for the second half of 2023. The prediction is that a 30-year fixed-rate mortgage will average approximately 6.1% in the third quarter of 2023.

One of the reasons the interest rates have been volatile is the increase in inflation felt throughout the country. The Federal Reserve’s job is to ensure the United States economy functions steadily – not too quickly or too slowly. In an attempt to restrain inflation, the Federal Reserve increased interest rates. The increase in interest rates makes it more expensive to borrow money, and both businesses and consumers spend more of their money on interest payments.

Savers are encouraged to save and earn higher interest payments, lowering the amount of money circulating throughout the economy and hopefully reducing inflation to keep the economy on track. However, long-term loans experience an impact when the Federal Reserve chooses to raise or lower interest rates.

Investors respond to the current market

Global real estate investors have identified Tennessee as a great opportunity to further their investments. The state is known to be business-friendly with a lower-than-average cost of living. Over 1,000 businesses with a foreign base invested almost $41 billion in cash, employing over 156,000 Tennessee residents.

With a history of solid financial management, foreign investors see Tennessee as a great opportunity for investment. CNBC even ranked Tennessee number six overall for one of the best states to do business with last year.

Increase in population growth throughout Tennessee and in North Chattanooga

In 2021, the population of Tennessee increased at one of the quickest rates in the United States of America, according to the United States Census Bureau. Local leaders use the popularity and vibrancy of local communities like North Chattanooga to revitalize streets, create attractive downtown areas, and rebuild ailing infrastructure. While the benefits are numerous and beautiful, North Chattanooga real estate has become more expensive.

People interested in moving to Tennessee and even long-time residents may need assistance to afford a home in this new market landscape. First-time home buyers are at a particular disadvantage. However, a higher standard of living, population growth, and vibrant communities have allowed public and private investment to continue fueling growth in Tennessee and cities like North Chattanooga. The Tennessee Department of Economic Development identified over 65 urban areas they want to revitalize.

Real estate agents are experts at understanding the local market trends and ensuring buyers and sellers can navigate this ever-changing market. For buyers, real estate agents are familiar with several available programs in Tennessee to provide loan assistance. Local agents can offer both current and new residents the opportunity to view current homes for sale in North Chattanooga.

When it is time to move, contact Gregory Depasquale for all your real estate and investing needs. His attention to detail, understanding of local market trends, and dedication to always putting his client’s needs first will ensure you find the perfect home for sale in North Chattanooga. Additionally, his personal knowledge of the local real estate market allows your real estate transaction to occur seamlessly.

Work With Gregory

Gregory is equipped to provide clients with experienced representation and personalized professional service. Contact Gregory today to start your home searching journey!

Follow Us on Instagram