As we move through the heart of summer, Chattanooga’s real estate market is revealing key trends that indicate a shift toward more balance—offering increased opportunities for both buyers and sellers. The latest data from the Greater Chattanooga REALTORS® Weekly Market Activity Report (Week Ending July 12, 2025) gives us a clear view of where the market stands today.

🔍 Inventory Is Rising: More Choices for Buyers

Inventory levels have climbed significantly in the Chattanooga area. As of the week ending July 12, 2025, there were 3,288 active listings, a 25.4% increase year-over-year (from 2,623 homes in 2024)

Additionally, the Months Supply of Inventory for June rose to 3.8 months, up 26.7% from 3.0 months one year earlier. This suggests a softening from the extreme seller's market of recent years, offering buyers more time and options.

🏠 Home Prices: Holding Steady with Slight Adjustment

The Median Sales Price in June 2025 was $345,000, reflecting a slight 0.4% decrease from $346,250 in June 2024. This minimal drop suggests price stabilization rather than a downturn.

Sellers are receiving slightly less compared to peak conditions, with the percent of original list price received dropping to 95.8%, down from 97.1% last year. Similarly, the percent of last list price received was 97.8%, also down by 1.1% from 2024.

⏳ Days on Market Increase: Slower Pace, Not Less Demand

The average Days on Market Until Sale rose to 50 days in June, an increase of 28.2% from 39 days a year ago. While this may seem like a slowdown, it more likely reflects buyer caution and the availability of more options, rather than a drop in interest.

🧮 Housing Affordability Holds Flat

The Housing Affordability Index (HAI) remained unchanged at 84 in June 2025—identical to June 2024. This means that the median household income is just 84% of what’s needed to qualify for a median-priced home under current interest rates—highlighting affordability as an ongoing concern for many buyers.

📈 Pending Sales and New Listings

While new listings dipped 9.9% year-over-year for the week ending July 12 (308 listings vs. 342 last year), pending sales rose by 4.0%, totaling 209 contracts for the week. This could indicate that despite tighter listing activity, buyer demand remains relatively strong and responsive to available inventory.

💡 What This Means for Buyers and Sellers

For Buyers:
You're seeing more options and slightly less competition. With sellers becoming more negotiable and market time increasing, this is a good time to explore homes without feeling rushed. Mortgage rate buydowns and incentives—used by 62% of homebuilders nationally according to NAHB/Wells Fargo are becoming more common in our area, too.

For Sellers:
Homes are still moving—but pricing smartly and staging well is crucial. The days of multiple over-asking offers within 48 hours are fading. Work with a knowledgeable agent to position your home competitively while taking advantage of historically strong sale prices.

🔑 Trust Dixon Homes Realty to Guide You Through

At Dixon Homes Realty, we’re committed to helping buyers and sellers navigate this evolving market with confidence and clarity. Whether you’re ready to list your home or are searching for the right neighborhood, our team is here to provide expert advice, personalized service, and trusted results.

📞 Call or Text Bob Dixon at (404) 271-1360
📩 Email: Bob@DixonHomesRealty.com
🌐 Visit Our Website
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Sources:

• Greater Chattanooga REALTORS® Weekly Market Activity Report, July 21, 2025

• NAHB/Wells Fargo Housing Market Index (HMI), June 2025