The Nashville housing market has seen significant changes in the past year. The median home price in Nashville is now $450,000, which is up by 6% compared to the previous year. However, despite the increase in home prices, the number of residential closings has decreased by 31%, with only 1,414 closings. This could be due to various reasons, including rising interest rates and economic uncertainty.
Another critical factor affecting the Nashville housing market is the increase in inventory. The number of available properties has risen to 6,083, which is up by 34% compared to the previous year. This could indicate that many homeowners holding off on selling their home during the pandemic have decided to sell finally or that more new constructions are available.
Pending sales for January 2023 closed out at 1,414. This is a 34% decrease since January 2022. This could indicate that buyers have decided to wait for interest rates to come down to a more affordable rate. The current average 30-year fixed mortgage rate in Tennessee increased five basis points from 6.26% to 6.31%. Tennessee mortgage rates today are one basis point lower than the national average rate of 6.32%.
Another important metric to consider is the days on the market, which has increased by 52% compared to the previous year. Currently, the average days on market in Nashville is 61, indicating that properties are staying on the market for more extended periods of time. This could be an indication that buyers are being more cautious in their decision-making or that there is less urgency to purchase properties.
Overall, the Nashville housing market is experiencing a period of change and flux, with increasing home prices, more available inventory, and fewer residential closings. However, with a significant increase in pending sales and a growing market, there is still an opportunity for both buyers and sellers in the Nashville area. It will be essential to keep a close eye on the market and adapt to these changes to take advantage of new opportunities as they arise.