Northshore Housing Market Update: July, 2024
By Robert C. Baker
Corresponding to national trends, the real estate market in the greater Chattanooga area including Northshore is seeing a gradual rise in inventory (homes, apartments, condos and land for sale) as well as an increase in days on market (how long it takes for properties to sell).
In this article, we’ll look at home listing and sales data for Northshore and include some tips for successfully marketing and selling your Northshore home.
As of July 3, 2024, there are 50 active listings in Northshore ranging from $279,900 to $9,500,000. Single family properties range from small to large Craftsman-style homes, contemporary construction, riverfront apartments, industrial luxury and traditional luxury homes.
During the previous month fourteen homes sold ranging from $320,000 to $1,510,000. The median sales price for the area was $555,000, which is higher than most other communities in the greater Chattanooga area. Original list price for Northshore was $302.00 per sq ft, while sold price was $295.00 per sq ft, suggesting some price reductions. Mean days on market was 45, while median days on market was 7.5.
Homes under $500,000 spent 67 days on the market, although two homes under this price point spent an average of 4 days on the market. As we’ve written previously, we’re finding that homes under this price point are taking longer to sell, in contrast to larger, more expensive homes in Northshore. That said, the maxim is true: homes that are appropriately priced, are in good condition, and are marketed correctly tend to sell more quickly.
In June, a total of six homes were sold with prices ranging between $500,000 and $1M. While one condo took 201 days to sell, clearly an anomaly, homes in this price range spent an average of only 4 days on the market. Give the lifestyle that Northshore affords, its public and private school options, and its close location to City Center, it is understandable why homes in this price range and location would sell so quickly.
Two homes selling at $1M and above spent 2 days and 95 days, respectively, on the market; both of these were newer construction.
Unless a buyer has waived all contingencies (say, by paying cash, not requesting a home inspection, and so on), most home purchases today are sold on a contingent basis. As such, it’s important to look at what’s happening to homes in Northshore that are under a contingent contract.
As mentioned above, homes sold below $500,000 have higher days on market in contrast with higher-priced residences in the area. This includes sold with contingencies. The data also show that there are more frequent reductions as a percentage of list price in this price range. For example, out of 4 contingent sales as of July 3, 2024, three-quarters of homes had an average price reduction of nearly 7%.
This stands in contrast to 3 homes priced over $1M, two of which sold at list price, while one sold with a 16% price reduction.
What are some takeaways for Northshore home sellers?
First, Northshore sellers need to take into account both national and local economic trends. Home values have risen by half over the past 3 years and mortgage interest rates are still hovering around 7% (7.08%, Mortgage News Daily, July 3, 2024). Homeowners with existing low mortgage interest rates are disinclined to sell; home buyers facing higher prices and higher interest rates are hesitant to buy.
Second, Northshore homeowners with homes valued less than $500,000 and perhaps with smaller square footage need to follow a carefully-crafted marketing plan to get their home sold. Particularly challenging are homes that have under 1,000 sq ft. Additionally, these home sellers should exercise patience as they recognize that it may take longer to sell homes in this price range. Simply put: buyer affordability factors in more heavily at lower price points.
Finally, while properties that are appropriately priced, are in good condition, and are marketed correctly sell more quickly, and while properties priced above $1M do sell, at the moment the “sweet spot” for home sales in Northshore are homes with multiple bedrooms and bathrooms, generous square footage, and priced between $500,000 to $1M. Professionals working in City Center, folks with growing families, home buyers wanting an active lifestyle and vibrant community, and many others find Northshore a convenient, beautiful and exciting place to call home.
If you’re thinking about selling, call or text your Northshore home sales expert and sponsor of this website, Robert C. Baker, at (423) 443-1649.