Nashville Real Estate Market Update 

Mid-Year 2024 Update: More Homes Come To Market in the Spring

Now that we’ve reached halfway into 2024, we see some shifts in this Nashville real estate market update. Overall, demand for housing has cooled slightly. Nationwide market trends have been towards fewer sales, and that’s present, but Nashville’s high quality of life keeps its housing market brisk.

Month-to-month housing market overview

Sales activity began the year on a high note in the Nashville real estate market. January through May reported year-over-year (YOY) increases in the number of closed sales, which is as high as 11% around April. June 2024 swiftly put the brakes on, with a 13% drop from the prior year. Pending closed sales were also down.

Median home prices reported more stability. The single-family home price was at its lowest point in January, at $460,000, but hit $505,000 in April and June. Condominiums were at their lowest in February and March, at $339,990, with pricing peaking in May at $351,000.

In most markets nationwide, the days on market have been increasing in tandem with inventory increases and slower closed sales. Nashville proves how real estate markets are highly local. Its days on market have dropped month-to-month, from 59 in February to 44 in May and June. The year’s midpoint closed with a 3.5-month supply of homes for sale. That signals there is still a limited supply compared to buyer demand.

Sales Activity Slows

Looking at quarterly numbers, the number of single-family closed sales dropped in most counties except for Cheatham, Sumner, and Williamson County. However, where closed sales did decline, it was usually marginally, like the 27 fewer sales in Wilson County or the nine in Dickinson County. Davidson County, the heart of the Nashville metro, still had the most total closed sales for the quarter.

It’s quite a change from what was one of the hottest housing markets in the nation a few years ago. While it may no longer be no. 1, strong demand for homes still keeps Nashville a hot market. New listings are helping the limited inventory grow, giving potential homebuyers more choices in a competitive market.

Sales Price Growth

Williamson County remains the local leader in median sale prices, with buyers paying $995,000 for a single-family home—$94,000 more than in Q2 2023. Condominiums were priced at a median of $465,000. At the heart of Nashville, Davidson County single-family homes carried a median sales price of $525,000. Dickson had the most affordable homes, with a median price of $365,000, while Cheatham County had the most affordable condos, at $257,950. Every county reported pricing growth except Robinson County.

Second Half 2024 Forecast

For most real estate markets, the sustained higher mortgage rates and housing affordability challenges have been all the news. Experts hope that interest rates will start to cool slightly in the second half of 2024. Already in early July, incremental progress and a national average mortgage rate finally under 7% is bringing hope to potential home buyers. Any improvements in affordability could encourage more homeowners to list, stimulating the Nashville housing market. If you’re interested in buying soon, work with a local real estate agent to find the best Nashville community for you.

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 regarding 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 an average sales price of $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 homes for sale. Despite having fewer active listings 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 median sale 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 construction 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 summer being the busiest for sales activity. The activity drops off in the late fall and winter months. But signs of buyer demand 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 active listings.

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 are coming to market and how moderating interest rates will 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 real estate prices 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 housing prices 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 homes for sale.

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 sales 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 sales 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 sales 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 and a strong economy continue drawing people into the area, keeping pressure on home prices.