Chattanooga, TN-GA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Chattanooga, TN-GA, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with conforming loan amounts. The index covers the metropolitan statistical area (MSA) which includes Chattanooga and several surrounding counties in Tennessee and Georgia.

As of the fourth quarter of 2019, the HPI for the Chattanooga MSA was 176.6, up 4.1% from a year earlier. This means that home prices in the area have increased at a slightly faster pace than the national average over the past year. However, prices are still well below their pre-recession peak of 193.9 set in early 2007.

The recent rise in home prices has been driven by strong economic growth in the Chattanooga MSA, which has led to more people moving to the area and increased demand for housing. The unemployment rate in Chattanooga was just 2.5% in December 2019, well below the national average of 3.5%. The strong job market has helped to support rising home prices as more people can afford to buy a home.

Looking ahead, it is unclear how long this trend will continue as we are currently in an uncertain economic environment due to the coronavirus pandemic. However, given that interest rates are at historically low levels and there is still strong demand for housing in many parts of the country, it is possible that home prices will continue to rise in Chattanooga over the next year or two even as we navigate through this challenging period