Is Now a Good Time to Buy a Home?
Chattanooga’s real estate market is thriving.
The city offers picturesque surroundings, diverse neighborhoods, and a strong job market, which combine to make it an attractive destination for homeowners and investors.
People are moving to Chattanooga from all over the country, which has contributed to rising home values and a competitive environment.
So, you should wait to buy a house here, right?
Not so fast.
While navigating our current housing market might not be ideal for buyers, there are three big reasons why it still might actually be a good time to buy a home in Chattanooga.
1. Qualified buyers are always qualified buyers.
If you have enough funds socked away, making an all-cash offer can help you avoid competition, as well as avoid the burden of large interest payments. Given current rates, it’s perhaps no surprise that more than one third of home purchases were made by all-cash buyers in September 2023 — the highest level since 2014.
If you have a great credit score (of 740 or higher) and you can afford to make a bigger down payment — say, 35% instead of 20% — you can bypass the pain of high interest rates and reduce the size of your loan. You might also want to consider dipping into your savings account until you can refinance.
2. It’s important to keep an eye on the calendar.
During fall and winter, the real estate market can be slow. Not only is it harder for families to relocate during the school year, but most people don’t want to move during the holidays or during cold weather. This rings true no matter the overall health of the housing market.
If you are willing to shop around for a homesite and commit to a new build during the cooler months, you will find a lot less competition from other buyers.
3. There are no promises that buying next year will be any easier.
With the Federal Reserve focused on fighting inflation, there is no indication that the agency is considering cutting interest rates any time soon. One thing is for sure, however, and that’s when mortgage rates finally do drop and more buyers reenter the market, home prices will rise.
If you find a home you want to buy — and can afford to do so — buying a house remains a good investment.
Buying now means you can start building equity immediately. It also means you can avoid the potential for additional mortgage rate increases down the road. And when interest rates come back down, you can always refinance.
Some Hopeful Numbers
As of the time of this writing (December 2023), Chattanooga is currently a seller’s housing market.
There are some indications, however, that things are starting to soften a bit for buyers:
• The month's supply of housing inventory increased by 4.5% from September 2022 (2.2 months) to 2.3 months in September 2023.
• Half of all homes sold in Chattanooga in November were sold under asking price.
• Homes for sale in Chattanooga spent an average of 26 days on the market in November, an increase of 4% compared to this month last year.
Ultimately, the decision of when to buy a home is up to you. Whether you are looking for your first home or hoping to find a forever space, we can not wait to get to know you and be a part of your home buying journey! Click here to let us know more about you and your needs.
