Nashville Real Estate Market Update 

Q4 2023: Year-Ends With More Homes For Sale

Looking at month-to-month data for the Greater Nashville metro, total closings were down 3% from November 2023, but pending home sales were up almost 16%. That means 2024 is likely to kick off on a good note when it comes to sales activity. Here’s how the Nashville real estate market ended in 2023.

The metro big picture

The Nashville metro appeared to stabilize in terms of prices, with the December median sales price of $470,000 being the same as the prior year. That was despite fewer homes selling for 2023. The greater metro posted a median single-family home sales price of $470,000. Condos were at $340,000. 

The year ended with 26,348 residential closings, about 5,000 fewer than in 2022, or 16% less. It trends with what markets nationwide reported for the year. Housing affordability challenged home sales, bringing in fewer buyers and causing fewer homeowners to list their homes unless they had to. 

Nashville closed 2023 with an estimated 3-month supply of inventory for sale. Despite having fewer homes for sale than in December 2022, this metric has increased year-over-year because fewer buyers are on the market. The days on the market increased to 50. 

County sales

Residential sales may have been down for the last quarter of 2023 in Davidson County, but Nashville’s market is still cranking. Demand pushed up single-family home prices to $487,250, over $10K more than in Q4 2022. 

In next-door Williamson County, home price growth brought median residential prices to $913,428 for the quarter. Fewer single-family homes sold, but the condo market has really accelerated thanks to new deliveries. Sales here almost doubled from 2022, and prices grew from $438,750 to $480,000. 

Nashville area real estate tends to be cyclical, with the summer months being the busiest for sales activity. The activity drops off in the late fall and winter months. But signs are positive already, as January had a 5% increase in home closings for greater Nashville. That was before the Fed Reserve held its basis rate steady. The local market expects some stabilization this year and, hopefully, more listings on the market.

Nashville may no longer be the “hottest” real estate market in the land, but it’s still in demand with buyers. It will be interesting to see how more listings coming to market and moderating interest rates play out this year. 

September 2023: Median prices maintain growth in the face of slowing home sales

Nashville made headlines as a “hot” real estate market over the last few years, ranking 5th in 2023. Are pricing and sales activity keeping to that pace as high inflation and borrowing costs are cooling markets nationwide? Or is Nashville’s growth and expanding job market sustaining market activity? The answers lie in our Nashville real estate market update.

For clarity, the greater Nashville metro covers the Tennessee counties of Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson, and Wilson. 

The big picture from September 2023

September numbers of the greater Nashville real estate market report the median price of single-family homes as $468,410. That figure is the lowest from the last four months but not as low as January 2023, when home buyers paid $450,000. Condominiums were selling for a median price of $344,995 in September.

Year-over-year, the sales activity is down by 19%, with September having 2,807 closings compared to 3,478 last year. Month-to-month numbers were also down by about 500 sales. Nashville stood at a 3.4-month supply of inventory.

Note that the reported monthly figures are for the entire metro, not just the city limits.

A quarterly look at Nashville counties

The City of Nashville’s borders are inside Davidson County, where Q3 2023 residential sales had a median price of $492,768, a year-over-year increase of 3.58%. Overall sales were also down year-over-year by about 300 closings, but not as low as Q1 2023, when only 1,732 sales closed. Condominiums had a quarterly median price of $373,400.

Williamson County, home to some of Nashville’s top suburbs, had a median price of $900,000 for single-family homes, a 2.97% year-over-year bump. Condos were at $509,990, a significant 20.8% year-over-year gain. Home sales activity was down slightly quarter-to-quarter and year-over-year, but only by about 100 and 200 homes, respectively.

Further south in Rutherford County, where the top-growing market, Murfreesboro, lies beside Percy Priest Lake, homes had a median closing price of $430,000. This was more than the prior quarter, which reported a price of $420,000. About three dozen fewer homes were sold in Q3 2023; again, single-family home sales were down slightly year-over-year.

Dickson County had the most affordable single-home price at $350,000. However, the highly remote area also had the fewest home sales, with just 214 closings in Q3 2023. Dickson is directly east of Nashville, and its county seat, Dickson, had about 16,000 residents as of 2021.

So, what does all this indicate about the Nashville metro? Home sales activity is slowing down like the rest of the nation. But sustained job growth continues drawing people into the area, keeping pressure on home prices.