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hattanooga, a city in southeastern Tennessee, is gaining popularity among homebuyers. According to Becky Cope English, Managing Partner of The Agency Chattanooga, the real estate market is heating up. With over 187,000 residents, Chattanooga is situated near the Tennessee-Georgia border and has seen a significant number of home sales, with over 10,300 closed in 2024 alone.

    English notes that the market experienced a "little bit of a dip" last year but attributes this to the impact of interest rates on buyers. The average rate for 30-year fixed mortgages was 6.9% in 2024. However, English believes consumer confidence is increasing, driven by businesses thriving with less regulation and hiring more employees.

    This, she predicts, will lead to strong years for Chattanooga's real estate market in 2025 and 2026. The city's popularity stems from its climate, scenic beauty, and proximity to major cities like Atlanta and Nashville. Tennessee's tax-friendly environment, with only a sales tax, also makes it an attractive destination.

    Chattanooga offers a unique lifestyle, with southern hospitality, outdoor recreation opportunities, and cultural events like free musical festivals called "Block Parties." The city has about 2,800 residential properties on the market, with inventory slowly increasing. Homes sold in January averaged $330,000, with English projecting a 2-3% increase throughout the year.

    Looking ahead, English forecasts a 3% increase in 2025, expecting it to be stronger in 2026 due to potentially lower interest rates and increased consumer confidence.