Chattanooga residential real estate had a wild fall season after the Federal Reserve more than doubled interest rates in a span of months 6 to 9 months. Mortgage interest rates increased in 2022 at the fastest rate since the early 1980s. In fact, mortgage rates have never doubled in 1 year's time. That lead to home sales going down in Chattanooga real estate by 9.8% in August, down by 15.3% in September, and down by 21.6% in October. THE GOOD NEWS is that the November inflation numbers were down to 7.7%. The mortgage market reaction was a .5% drop in interest rates. I anticipated that interest rates would drop as inflation drops, but I did not expect it to happen this quickly. There was a spurt of Chattanooga home buying activity in early November, so it seems like those who have sat on the sideline are starting to creep back into the market. Most likely, interest rates will continue to go down and home buyers will continue to re-enter the market in 2023. In my experience, every time home buyers sit on the sideline there is a spurt of pent up demand that follows.
As a Chattanooga home seller, know that Chattanooga homes will most likely sell better in 2023, but also know that you have to price your home according to the market. This is not the time to try to break a record with your Chattanooga home sale price. People who pass on your home due to the price being too high will most likely not come back to your home. Your home gets the most attention when it is new on the market, so make sure the price the consumer sees is one that will get your home shown and therefore sold.
Chattanooga home buyers need to know that home prices have not gone down much yet. The Chattanooga median home sales price is still up, but you can still get more incentives now than 1 year ago. Chattanooga home pricing has not gone down because the inventory of homes for sale is still lower than what a healthy market should have.
Call Chattanooga Realtor, Nathan Walldorf, to sell your Chattanooga home or to buy a Chattanooga home at 423-544-7700.