Chattanooga Housing Market Update: Week of Sept. 19, 2026

The Chattanooga housing market got a curveball this week: mortgage rates climbed over 7%. And buyers... kept buying anyway. Pending sales in the week ending September 19 were up 12.2% from the same week last year.

Quick note on what you're looking at. The weekly numbers cover the week ending September 19, 2026 for the whole Greater Chattanooga region — Hamilton County plus places like Cleveland TN, Ringgold, Fort Oglethorpe, and Dalton. The monthly numbers are for August 2026, the latest full month. When a number is for just the city of Chattanooga, I'll say so.

What's happening in the Chattanooga housing market this week?

Here's the week in three lines:

• New listings: 282 — down 5.7% from this week last year.
• Pending sales: 202 — up 12.2% from this week last year.
• Homes for sale: 4,120 — up 17.3% from a year ago.

A "pending sale" is a home where the seller said yes to an offer and it's headed to closing. So 202 households picked a house and signed on the dotted line in one week.

Here's the part I like. Fewer new listings came on, and more homes went under contract. That's two weeks in a row where pending sales beat last year by double digits while new listings didn't. Not a trend yet — but worth a raised eyebrow.

Did mortgage rates go up in Chattanooga?

They did. According to Freddie Mac, the 30-year fixed rate averaged 7.03% as of September 24. That's up from 6.95% the week before and 6.30% a year ago. The 15-year fixed averaged 6.42%, up from 6.26%.

That shows up in the Housing Affordability Index, which was 88 in August, down 5.4% from 93 a year ago. Plain English: 100 means a typical family earns exactly enough to qualify for the typical home. At 88, they're a little short. Rates and prices both nudged the wrong way for buyers.

If you're house hunting, get a fresh payment estimate before you write an offer. What you ran in July isn't the same number anymore. (Sorry. I don't make the rates. I just complain about them.)

Are there still more homes for sale than last year?

Yes — a lot more. 4,120 homes for sale is up 17.3% over last year. But here's the interesting bit: that gap is shrinking. Back in the week ending July 4, inventory was up 27.1% year over year. Now it's up 17.3%. Still a big cushion for buyers, just not as big as it was this summer.

Over the last three months, pending sales totaled 2,877 — up 6.1% from the same stretch last year. New listings totaled 4,443, up 3.0%. Buyers have been picking up the pace a bit faster than new sellers are showing up.

Months of supply was 4.4 in August, up 10.0% from 4.0 a year ago. That number means: if nobody listed another house, how many months would it take to sell everything that's out there? Around 4 to 6 months is usually called "balanced." We're right on the edge.

Are home prices going up in Chattanooga?

Still yes. The Greater Chattanooga median sales price was $350,000 in August, up 4.5% from $335,000 last year. "Median" just means the middle — half the homes sold for more, half for less.

Inside the city of Chattanooga, prices ran hotter. The city's median sold price in August was $365,000, up 7.7% from $339,000 a year ago. Total dollars sold in the city were up 15.1% from last August.

How long are homes taking to sell in Chattanooga?

Longer. Across the region, homes averaged 55 days on market in August, up 19.6% from 46 a year ago. "Days on market" is how long a home sits before a buyer signs a contract.

In the city of Chattanooga, it was 52.2 days, up 35.2% from 38.6 a year ago. The city also had 1,252 active listings in August — up 28.5% from last year. So city sellers are getting higher prices, but they're waiting longer and facing more competition to get them.

Are sellers getting their asking price?

Mostly close. In August, sellers across the region got 97.9% of their last list price, up 0.3% from last year. Against the original list price, it was 95.1%, down 0.1%.

The gap between those two numbers tells you a story: a lot of homes are getting a price cut before they sell. Price it right the first time and you skip the haircut.

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

It's pretty close to balanced. Buyers have more choices and more time. Sellers still have rising prices on their side. Nobody gets to be the boss of the deal automatically anymore.

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

If you're buying: you've got room to breathe. With homes sitting 55 days on average, you can take a second look, ask for repairs, and negotiate. Just lock in a real rate quote first — 7% changes the math. This goes for East Brainerd, Ooltewah, Hixson, and Red Bank just as much as North Georgia.

If you're selling: prices are still up, and buyers are still signing contracts. But with more homes on the market, your house has to look good and be priced right on day one. The homes that sit are the ones that get cut. Whether you're in Signal Mountain, Soddy-Daisy, or Cleveland TN, the first two weeks matter most.

Wondering what all this means for your house, or the one you've got your eye on?