Nashville Housing Market Report: July 2022
Updated: Mar 24
We are back this month with our Music City housing market report. This month, we will compare May 2022 sales to sales in July 2022. May of this year seems to be where the Market peaked in Nashville, so it seemed like a good place to start. As a reminder, housing data will be behind by about 30-60 days and sometimes as high as 90 days. Sales that closed in July would have gone under contract in May or June, but it will give us a good idea of where the current Middle Tennessee housing market is heading. In general, we are seeing a decrease in sales volume and an increase in days on the market. Overall, the Nashville housing market is still strong, but we are beginning to see some indications that the Market may be slowing down. Let's take a closer look at the numbers to see what we can find.
Nashville's Housing Inventory:
If you are in the market for a new home, you may be pleased to hear that housing inventory is on the rise, giving you more buying power. According to greaternashvillerealtors.org, in May of 2022, there were 4,114 single-family homes available, while in July, that number rose to 6,486. This increase in inventory gives buyers more choices and a little more room for negotiation. Gone are the days of offering $50,000 over the asking price with no requests for repairs. However, it is essential to remember that demand is still high, so you will need to act quickly if you find a home that meets your needs. With a bit of patience and perseverance, you should be able to find the perfect home for you and your family.
Nashville's Days on Market:
As we move into the fall season, I believe that the DOM will begin to increase. In May, the average DOM was 25 days, while in July, it rose to 28. While this may not seem like a significant increase, I believe it indicates a trend that will continue in the coming months. We are already seeing buyers becoming more cautious and more selective about the homes they are interested in purchasing. Rember, longer Days on the Market equals a slowing market.
Nashville's Median Home Price:
In May, the median sales price for a single-family residence was $498,785. This number decreased slightly in June to $495,070 and then again in July to $490,000. Although the decrease is small, it is essential to note that this is the first time we have seen a dip in prices in a very long time. This price dip could indicate that the market is starting to cool off after several months of solid growth. However, it is too early to say for certain whether this trend will continue. We will need to wait and see how prices hold up in August and September before making any definitive statements about the market's direction.
Despite the recent decline in home sales, it is important to remember that we are still in a seller's market. This is due to the fact there remains a housing shortage; as long as there is fewer than six months' worth of homes on the market, the seller still may have the upper hand in some situations. Once inventory levels rise to the point where there is more than six months' worth of homes available for purchase, we will officially be in a buyer's market. That being said, most homes receiving multiple offers over the asking price are highly upgraded and located in desirable areas, while outdated homes are beginning to see longer days on the market and the inevitable price reduction. Now more than ever, proper pricing and staging are crucial. If you are a seller, it's becoming increasingly important to do all you can to clean up your home and make any upgrades that your realtor may suggest. If you are considering buying or selling a home in Middle Tennessee, we'd love to help!
*All stats are based on the following counties Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson.