The Tennessee Markets Where Home Prices Are Dropping

Are you hunting for a new home but don’t want to pay an arm and a leg? We’ve got some exciting news. Tennessee has several markets where home prices are dropping significantly. Whether you’re searching for single-family homes in Nashville, townhome properties in Knoxville, or a sprawling homestead near Clarksville, there are great deals just waiting for buyers like you!

We’ll examine why house prices have declined in Tennessee in 2023 and which areas offer the most bang for your buck. So if you’re looking to find a place that won’t empty your pockets yet still provides plenty of benefits, such as easy access to city amenities and fantastic mountain views, check out the markets below!

The Big Picture on Tennessee Real Estate

One data analysis from May 2023 shows that Tennessee’s housing market prices were down 2.4% year-over-year. The median sales price was $377,200 for all home types, which aligned with the US average at the same time. The Tennessee Association of Realtors had a different report for the same month, with a 1.7% decline and a median sales price of $282,236.

Prices peaked back in May 2022 at a median of $386,000. This year-over-year spring price drop could be a good thing, as past data shows median prices typically increase during April, May, and June in the state.

At the same time, the number of closed home sales dropped by 15%, and inventory increased by about 14%. That means that, in general, home buyers are getting more choices along with more affordable homes.

This signals the statewide market is slowing down, but given the phenomenal growth of the last three years, that’s neither unexpected nor a bad thing. The market had to swing back into balance at some time.

So rather than look at which markets are the strongest with their year-over-year price growth, where can home buyers look for home deals in Tennessee?

Nashville

This one is a mixed bag, as Nashville still often pops up as one of the hottest real estate markets in the nation. However, it’s also been listed as one of the most overpriced markets, which poises it for a price correction. It’s a market to watch as 2023 proceeds. Some real estate experts expect the year to see around a 10 to 20% decrease in Nashville housing prices.

The data from May 2023 showed a 5.3% year-over-year (YOY) decline to a $445,000 median price. Around 24% of the homes listed on the market had a price drop. However, Nashville homes were receiving around 98.3% of their list price. The days on the market stood at 42, which was an increase, so buyers looking for homes in Nashville will have more selection.

Given the market size, it’s important to note that this price drop is likely inconsistent across the metro.

Brentwood

Brentwood is known as one of Nashville’s most affluent bedroom communities. It showed a median sales price of $1.38 million for May 2023, but even that price was down 11.1% YOY. The market peaked in May 2022 at $1.55 million.

With home prices this high, it is no surprise that the market shows some bumps and valleys. Past years’ data indicates a traditional spring price growth. However, there have been overall year-over-year declines since its May 2022 peak.

This definitely makes it a market to watch for price drops. In May 2023, around 28% of its homes had dropped prices. Sellers were receiving about 97% of their list price.

Hendersonville

Located lakefront northeast of Nashville, Henderson is another popular bedroom community option for the metro. Here, the May 2023 median sales price was $445,000, which was down 11.8% YOY.

Sales prices peaked in August 2022 at $549,000. In further indications that market activity is slowing, the year-over-year days on the market grew by 24 days. The market sales prices have generally been sliding since August 2022, with a few slight pricing bumps along the way.

Murfreesboro

Part of the greater Nashville metro area, Murfreesboro’s housing market peaked in July 2022 at $430,000. It has been a slow and steady year-over-year decline ever since. May 2023’s median sales price is right at $415,000, which was a 2.4% YOY decrease.

Perhaps the most significant change was the days on the market, which was at six in May 2022, but now stood at 45. Around 21% of the listings have dropped their prices.

Clarksville

This city near the Kentucky border remains stable with no year-over-year price increase or decrease as of May 2023. The median sales price was $300,000, and homes were typically on the market for 48 days. However, the sales price has generally declined after peaking in June 2022 at $310,000.

Based on data from the past few years, Clarksville typically sees some spring growth, followed by market leveling or activity dropping off. So, May 2023 posting neither gains nor losses shows that the action is slowing.

Around 24% of the listed homes had price drops. However, the pricing tends to be on point as 99% received their list price.

Pigeon Forge

Median prices are high in this tourist town, reaching $640,500 in May 2023. That was a 0.23% decline and part of a more considerable price decrease since its peak in November 2022 at $840,000. Given the smaller size of Pigeon Forge’s real estate market, it tends to have a lot of peaks and valleys when charted out. For instance, prices were down almost 35% YOY in April 2023.

Pigeon Forge homes were receiving around 97.7% of their sale-to-list price. The days on the market increased to 55 days from 41, which is another sign of slowing activity.

Maryville, TN

This suburban town outside Knoxville had a 5.5% year-over-year decline in its median sales price. At $372,500, it’s very close to the Tennessee median price. The local housing market peaked in October 2022 at $400,000. Even though a 5.5% decrease may not seem like a lot, the month prior, it was down 14%.

Even though sales prices are declining, the prices are still competitive, with a 99.4% sale-to-list price ratio. Around 23% of the homes had price drops, and the days on the market stood at 35.

Johnson City

Johnson City is a beautiful mountain town in the far east of Tennessee. Its housing prices topped out in May 2022 at $311,000, but really a significant price decline started in November 2022. Its May 2023 median sales price was $275,000, an 11.5% drop YOY.

Hickory Hill

Over in the Memphis metro, data from their real estate association showed the residential neighborhood of Hickory Hill had a nearly 14% drop in its median sales price. Homes here were running $159,000 in May 2023. Its year-to-date median price was down 8.3%.

Cordova

Another Memphis community, Cordova, had a median sales price of $275,000, a 5.2% YOY drop. The prices peaked at $320,000 in July 2022. Ever since then, the market’s prices have been under a slow and steady decline. However, the year-to-date prices were actually up 1.9%.

Collierville

This Memphis suburb’s median sales price was $539,950, a 5.4% YOY drop. Their year-to-date sales were up 0.6%, so the market may be in an overall decline that hasn’t quite registered.

Arlington

Arlington is another community located near Memphis. The median sales price was $409,172, a 9.1% decline. Its prices have been sliding downward since February 2023. The prices peaked in August 2022 at $476,000.

Homes had a seven-day increase in the days on the market. Around 18% of the listings have dropped their prices, but the market is still listing competitively at the big picture level, as 99.9% received their list price.