Will Chattanooga’s booming housing market end?

CHATTANOOGA, Tenn (WDEF) – Over the last year, Chattanooga’s Housing market has continued to boom despite an ongoing pandemic. 

Home values have increased nearly 15% compared to last year’s pre-pandemic prices, realtors suggest that this may be a result of the limited amount of inventory that’s available. 

“As of Wednesday we only had 299 homes for sale in Chattanooga. Which is historically low. We’re seeing houses sale from anywhere to in a few hours to maybe 2 days on the market. It’s going extremely quick. Something will pop up now and within 20 minutes I’m sitting on their front porch. The problem is there are seven agents behind me trying to get in as well with their buyers,” says Dawn O’Neil, Realtor for Remax Properties.

With such a competitive market, some buyers are wondering if purchasing a home right now is a smart investment ? One investor says it all depends on how long you plan to stay. 

“If someone is looking to buy real estate right now, while the prices are high, mortgage interest rates are really low. If someone is interested in a long term place to call home then today’s prices shouldn’t prevent them from building equity in a long term asset. I Think it’s important to calculate some what if scenarios. What if we leave in 2 years? What if we leave in 5 years? What if prices go up X percent or go down X percent? Then i think you can find that comfort zone for yourself to determine what a good path forward would be,” says Jennifer Harper, Bridge Financial Planning. 

Though this fast pace market can be disheartening for buyers , officials believe the market will begin to calm down as our area begins to reopen and return to normal. 

“It’s hard when your writing offers and you’re competing against 10-15 other offers. So it’s hard to have that patience. You have to realize interest rates aren’t going anywhere. The economy is looking great. We’re going to calm down. People talk about the bubble and is it going to burst? No. We might open the bubble to let some air out of it but we are definitely not looking at any kind of market crash,” says O’Neil.

The federal reserve recently announced that they are planning to keep interest rates low until the economy heals from the effects of the pandemic.  

Home buyers are encouraged to sit down with a realtor and financial advisor before making any major decisions.