The secret is out. What Nashvillians have known for decades has leaked in the past few years…Middle Tennessee is a great place to live! The variety of industries and job opportunities coupled with the pleasant weather and Southern charm make Nashville and the surrounding areas an idyllic place to work, play and live, whether as a young adult, raising a family or retiring. And that leaky secret means home buying trends have gone off the rails over the last year.
So what are the home buying trends in and around Nashville currently and what does the forecast look like over the short and long term? And why is the market trending this way?
Home Buying Trends
The Middle Tennessee housing market has been a seller’s dream over the past few years, including the past 12 months, even during COVID. The days on market have been brief (12 days in May 2021!) and prices continue to climb. Median home value has increased 16% in the metro area in just the last 12 months. And over the past decade or so, the metro area has continued to grow. What once seemed so far away is now part of the “Nashville area.” Explosive growth in places like Franklin and Murfreesboro speak to this shift, with sales increasing more than 30% in these and similar surrounding cities and towns.
Why is Nashville Home Buying So Hot Right Now?
Not only are industries and job opportunities driving an influx of new residents, mortgage rates are still incredibly low. This means people who were renting or living with parents are now buying homes. And whether new to the area or exploring new housing options for existing residents, there are lots of buyers competing for limited inventory.
Why is it a Seller’s Market?
Inventory continues to be low in and around Nashville, both from existing homes and new construction. As the price of lumber is slowly coming down from record levels, it’s taking a while for construction to ramp back up and the lumber industry to fill the demand. While much of the rest of the country is seeing an increase in inventory, Nashville is staying low. While, yes, you can get great money for your house right now, you still have to live somewhere. And unless you’re moving out of Nashville, many people are hanging on to their homes.
What’s the Housing Market Forecast?
While no one can predict the future, the housing market is predicted to stay competitive over the next few years, with house prices continuing to rise. So if you can find a seller to accept your offer, whether to live in the home or as an investment, now’s the time to buy. The blazing pace and incredible prices do not seem to be decreasing any time soon.
When you are needing someone to guide you through the tricky Nashville real estate trends, whether as a buyer or a seller, don’t settle for anything less than the best. Susan Gregory is consistently a top agent in the state and knows this market well. Reach out to her at 615-207-5600 for your home buying and selling needs.