Chattanooga Housing Market Report Card: 2026 So Far

Three quarters of 2026 are in the books, so it's report card time for the Chattanooga housing market. I lined up the first nine months of this year against the same nine months of last year, month by month. Short version: more homes sold, buyers got a lot more to pick from, and sellers had to give a little more to get the deal done. Nobody failed. Nobody made the honor roll either.

Quick housekeeping: the Greater Chattanooga REALTORS® still haven't released a new weekly report, so there are no weekly numbers here. Everything below is live MLS data for full months, January through September 2026, for the greater Chattanooga region and for the city of Chattanooga on its own. I walked through September by itself last week, so this time we're zooming out.

What's happening in the Chattanooga housing market right now?

First, the latest full month. Here's September 2026 for the whole region (Hamilton County plus Cleveland TN and North GA towns like Ringgold, Fort Oglethorpe, and Dalton):

• 4,219 homes for sale, down 2.5% from August, up 13.5% from last September's 3,718.
• 1,376 new listings, down 9.4% from August, up 4.2% from a year ago.
• 797 pending sales (homes under contract that haven't closed yet), down 23.1% from August and down 4.1% from a year ago.
• 939 closed sales, down 3.6% from August, up 3.1% from a year ago.
• $340,000 median sold price, down 2.9% from August, and exactly even with last September.
• $408,729 average sold price, up 1.8% from a year ago.
• 56.1 days on market, up 20.6% from last September's 46.5.
• 94.2% of original list price and 97.4% of last list price, both a hair lower than a year ago.
• 4.67 months of supply, up 7.6% from 4.34.
• $383.8 million in total sales, up 5.0% from a year ago.

Those September numbers have firmed up a touch since last week as late closings got entered. Small stuff, like the city median moving from $354,900 to $354,950. The numbers above are the ones that stand.

Did more homes sell in Chattanooga in 2026?

Yes. And this is the grade I'd frame and put on the fridge.

• From January through September, the region closed 8,425 sales. Same stretch last year: 7,848. That's 577 more families who got the keys.
• Every single month of 2026 beat the same month of 2025. Nine for nine.
• Total dollars sold: about $3.45 billion so far this year, versus about $3.15 billion last year. Roughly $303 million more.
• Inside the city of Chattanooga: 2,230 sales so far this year, versus 2,107 last year. That's 123 more, about $66 million more in total sales.

So for all the talk about a "slow market," more homes changed hands this year, not fewer. Slower is not the same as stuck.

Are there more homes for sale in Chattanooga than last year?

A lot more. The region had more homes for sale than the year before in all nine months of 2026. Back in January 2025 there were 2,821 homes for sale. This September there were 4,219.

Part of that is more sellers jumping in. The region got 13,816 new listings from January through September, versus 12,562 last year. That's 1,254 more homes hitting the market.

In the city, it's the same story. 1,186 homes for sale in September, up 17.4% from last September's 1,010.

Good news: inventory may be cresting. Region-wide it peaked at 4,326 in August and slipped to 4,219 in September. The city peaked at 1,277 in July and has eased down since. Fall usually does that. I'll tell you if it keeps going.

Are home prices going up in Chattanooga?

Slowly, and not every month. Quick reminder: the median price is the middle sale. Line every sale up from cheapest to priciest, and it's the one in the middle.

• Region: the median beat the year before in 7 of the 9 months. February came in lower ($327,700 vs. $331,000), and September tied ($340,000 both years). This year's high was $356,000 in May.
• City of Chattanooga: the median beat the year before in 6 of 9 months, came in lower twice (February and April), and tied once (June). September landed at $354,950, up 6.0% from last September's $335,000.

So prices are creeping up, not rocketing. Think "tortoise," not "hare." If anybody tells you Chattanooga home prices are crashing, the numbers just don't say that.

Are homes taking longer to sell in Chattanooga?

Yes. Days on market is how long a home is listed before it goes under contract. Region-wide, it ran longer than the year before in 8 of 9 months. July was the only exception, and only barely (48.2 days vs. 48.6).

The city slowed down even more. City homes averaged 53.6 days on market in September, up 30.1% from 41.2 a year ago. The region was at 56.1.

Is Chattanooga a buyer's or seller's market?

Still a seller's market on paper, but it's been drifting toward the middle all year.

"Months of supply" means: if nobody listed another house, how many months would it take to sell everything that's for sale? Around 6 months is usually called balanced. Under that leans toward sellers. Over that leans toward buyers.

• Region: 4.67 months in September. It was higher than the year before in every month of 2026, and topped out at 4.8 in July and August.
• City of Chattanooga: 4.9 months in September, up 11.4% from 4.4. The city went over 5 months from May through August, peaking at 5.29 in July. That's the highest in the two years of numbers I have.

Here's the one grade that didn't budge. The region's sale-to-original-list price came in lower than the year before in all nine months. In September, sellers got 94.2% of what they first asked. On a $340,000 house, that's about $19,700 less than the first price on the sign. In the city it was 93.8%. Translation: price cuts and negotiating are just part of the deal now.

Should I buy or sell a home in Chattanooga right now?

If you're buying

• You have close to the most homes to choose from in the last two years. That's real leverage.
• Homes are sitting longer, so you usually have time to think. You don't have to make an offer from the driveway.
• Offers below asking are normal, especially on homes that have been listed a while.
• Prices haven't dropped, though. Waiting for a big discount has not paid off so far this year.

If you're selling

• Buyers are out there. More homes sold this year than last, in every single month.
• But you're competing with a lot more listings, from Hixson and Soddy-Daisy to Ooltewah, East Brainerd, Red Bank, and Signal Mountain.
• Price it right the first time. The homes that start too high are the ones collecting price cuts and days on market.
• Show up ready: clean, fixed, and photographed well. In a market with this many choices, buyers skip the "project" house first.

Overall grade for 2026 so far? I'd call it a solid B. Steady sales, steady prices, and a market that finally gives buyers room to breathe. Wondering where your own plans fit into all this?