Published October 26, 2026 in Market Update

More homes are moving in Chattanooga even with rates above 7%

By Leatha Eaves

Real estate, Primary market

Freddie Mac put the 30-year fixed rate at 7.32% as of October 22, 2026. That is real money every month. But here is what that number does not tell you: the Real Estate Data Aggregator counted 2,130 homes sold and 2,447 pending sales across the Chattanooga area in the three months ending August 31, 2026. Demand has not disappeared. Pricing and prep still matter.

Rates crossed back above 7% for the first time since January 2025, according to Realtor.com. That sounds scary! But the Real Estate Data Aggregator shows sales still happening in every ZIP code in this market. Buyers adjusted. They did not all walk away.

The national picture says the same thing

The National Association of Realtors reported 3.99 million existing-home sales in September 2026. That is a real number of real transactions, at these same rates. Prices nationally were up 1.3% year over year, the National Association of Realtors said. The market is slower than 2021. It is not stopped.

How each ZIP code is reading right now

Not every corner of Chattanooga is moving the same way. The Real Estate Data Aggregator counted 230 homes sold in ZIP 37421 in the three months ending August 31, 2026, up 32.9% from the same period in 2025. The median sale price there held at $377,500, up 0.7%. Homes took a median 44 days to sell, 8 days shorter than a year before. Prices held. Speed improved.

Ooltewah (37363) told a different story. The Real Estate Data Aggregator counted 277 homes sold, up 14.5%. But the median sale price dipped 3.6% to $455,380. Days on market fell 20 days to a median 52. More homes sold. Prices gave a little. That is the trade-off more inventory brings.

Hixson (37343) was one of the faster ZIP codes. The Real Estate Data Aggregator counted 229 homes sold, up 24.5%, with a median 33 days on market. That is 10 days shorter than last year. Nearly 3 in 10 homes there went under contract within two weeks of listing, at 30.1%.

ZIP 37406 in Chattanooga had the sharpest speed gain. The Real Estate Data Aggregator put the median days on market at 30, down 33 days from a year before. Nearly 4 in 10 homes there went under contract within two weeks, at 38.8%, up 21.6 points year over year. That is a big shift in one ZIP code.

ZIP 37405 in Chattanooga moved faster too. The Real Estate Data Aggregator counted 136 homes sold, up 16.2%, with a median 42 days on market, 34 days shorter than a year ago. The median price dipped 8.4% to $497,000. More buyers showed up. Sellers met them closer to ask.

ZIP 37419 in Chattanooga is worth watching. The Real Estate Data Aggregator put the average sale price at 100.5% of list price, up 2.7 points from last year. Nearly 3 in 10 homes sold above list, at 29.3%. Median days fell 23 days to 37. Fewer homes sold overall, but the ones that sold, sold well.

Where it is taking longer

Not every ZIP is moving fast. The Real Estate Data Aggregator put the median days on market in ZIP 37312 in Cleveland at 61 days, 12 days longer than last year. The median price there fell 6.9% to $332,360. Inventory rose 33.5%. More supply, more days, lower prices. Sellers there need to price sharper.

ZIP 37311 in Cleveland showed 5 months of supply, up 1.1 months from last year, according to the Real Estate Data Aggregator. ZIP 37406 in Chattanooga had 6.2 months of supply, up 2.8 months. ZIP 30742 in Fort Oglethorpe reached 6.1 months, up 3.3 months. Those are the pockets where buyers have more choices and more leverage.

Where prices held and where they dipped

Harrison (37341) had the strongest price gain in the data. The Real Estate Data Aggregator put the median at $359,500, up 8.1% from a year before. Homes sold there were up 29.3%, and pending sales jumped 44.9%. Small ZIP code, but real momentum.

Apison (37302) had the sharpest price drop, down 17% to $437,500. But homes sold there jumped 155.2%, and pending sales doubled. The Real Estate Data Aggregator shows a ZIP that added a lot of new supply fast. New listings were up 73.2%. More homes came to market, and prices adjusted to move them.

"But aren't rates too high for anyone to buy?"

Fair point. The numbers say otherwise. The Real Estate Data Aggregator counted 2,447 pending sales across this market in the three months ending August 31, 2026. Pending means a buyer signed a contract at these rates. Freddie Mac put the 30-year rate at 7.32% as of October 22, 2026. Buyers are doing the math and still moving.

Nationally, the National Association of Realtors reported that inventory rose to 1.60 million homes in September 2026. More supply gives buyers options. That is part of why deals are still happening even at these rates.

What this means if you own a home here

Rewind a few years. Sellers could list anything and watch offers pile up in days. Fast forward to today. That era is gone. But that is not defeat. It is a reset. Homes that are priced right and prepared well are still selling. The Real Estate Data Aggregator shows most ZIPs in this market closing deals at 97% to 99% of list price. That is not a bad outcome.

The gap between ZIPs matters more now. Hixson at 33 median days is a very different market from Cleveland's 37312 at 61 days. One street can read differently from the whole ZIP code. The numbers above are a starting point, not the whole answer for your specific home.