Northshore Housing Market Update: June 2024
By Robert C. Baker
Northshore’s real estate market reflects healthy activity with low inventory and a steady demand for housing. As of June 2, 2024, there were approximately 62 active single-family listings, ranging from riverfront condos to charming single-family homes. Prices range from $240,000 to $9,500,000. This variety caters to a broad spectrum of buyers, from first-time homeowners to seasoned investors looking for prime property.
In the past three months, Northshore has seen around 273 homes sold, indicating a healthy turnover rate. The median sales price for homes in this area is approximately $527,500 (May, 2024), a figure that underscores Northshore’s position as a desirable location within Chattanooga. This median price reflects a nearly 9% increase from the previous year, pointing to a steady appreciation in property values, much to the delight of current homeowners.
While there are exceptions, we are noting a brisk sales environment for homes priced $500,000 to $1M, with more affordable options staying on the market longer. This may be attributed to the 30-year mortgage rate hovering around 7%. Buyers, already accustomed to homes now priced 40-45% higher than they were 4-5 years ago, are now wrestling with interest rates that have doubled over the past 2-2.5 years.
This “double effect” of higher home prices and higher mortgage interest rates has constrained the market, as folks who purchased a home at a low interest rate are less inclined to list their home for sale, reducing homes available on the market.
Market Segments
1. Single-Family Homes: This segment continues to dominate the market, particularly appealing to families and individuals seeking spacious living with a community feel. Properties in this segment tend to offer more square footage, making them ideal for buyers looking for long-term residence or families seeking room to grow.
2. Condos and Townhomes: Along with national trends, condos and townhomes are popular options, especially among young professionals and empty-nesters. These properties often feature modern amenities and convenient access to downtown Chattanooga businesses.
3.Luxury Properties: The luxury market in Northshore, featuring homes and apartments priced above $1M, has also shown some activity. These high-end properties boast premium locations, exquisite designs, and unparalleled views of the Tennessee River and surrounding landscapes. Although they represent a smaller portion of the market, their sales contribute significantly to the overall market value. That said, luxury homes due to location, condition and other factors may “sit” on the market for a while, waiting for the right buyer.
Northshore: Still Attracting Attention
Northshore’s real estate market is characterized by a mix of property types ranging from condos to Craftsman to contemporary that cater to diverse buyer needs. With a median sales price of $527,500 and active listings selling in 29 days or less (May, 2024), the area continues to attract attention from local and out-of-state buyers alike.
The allure of Northshore lies not only in its picturesque setting and vibrant community but also in its promising real estate opportunities. Whether you’re looking to invest, relocate, or simply enjoy the unique charm of this Chattanooga neighborhood, Northshore presents a compelling case for homebuyers and investors in 2024.