Thinking of making a move? Here are three things to know about the Middle Tennessee housing market right now.
High Inventory
There’s a nationwide housing shortage, and the southern region follows a similar trend. However, Middle Tennessee’s housing inventory is growing. As more homes enter the market, buyers are presented with more options, and the average number of days on the market hits a slower, steadier pace. This creates a healthier, more balanced market.
Even over the past few years of lower housing demand, home prices still have risen in our area. So, savvy buyers are taking advantage of our higher inventory to consider their options, and sellers are pricing competitively.
In our region, any time of year is a good time to buy, but spring tends to be the peak season. If you want more choices, this can be an ideal time to start your search.
Healthy, Balanced Market
Following the COVID pandemic, Middle Tennessee went through a few cycles in the housing market as the world rebooted. After an unpredictable couple of years, the market is slowly stabilizing back to pre-COVID conditions.
From the end of 2020 to the beginning of 2022, interest rates were still low, and demand couldn’t keep up. Buyers were involved in multiple offers, waiving appraisal and inspection contingencies, and often going significantly over the asking price. It was a difficult period for anyone wanting to make a move.
Midway through 2022, we started to see a shift, with rates going over 4.5% for the first time in a while. This was a big adjustment for both buyers and sellers.
The market slowed down. There were fewer closings. Things began to balance out.
It began the trend we’re seeing today of houses staying on the market a bit longer. Buyers are negotiating on price and asking for repairs and closing costs from sellers again.
County and Urban Core Growth
So, why is Middle Tennessee bucking the national and regional trends regarding the strength of its market?
Tennessee is in the Top 10 for migration patterns. Nashville is in the Top 10 when you look at the market level. People want to be here – and stay here – because our cities and towns are vibrant, our taxes are lower, businesses are thriving, and we have beautiful seasons year-round. (Have you seen those cherry blossoms blooming?)
We continue to grow and develop across neighborhoods and counties, and we’re also proud that, in recent years, we have seen housing growth in Nashville's urban core that puts us on par with our peer cities.
If you’re interested in opening a new door and a new chapter, keep an eye out here on our Onward blog for regular updates on housing market trends.
