The Nashville, TN metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has slightly decreased by 0.2% year-over-year, settling at $459,000. In contrast, the Median List Price has increased by 3.0% to $489,000, indicating a potential gap between seller expectations and buyer willingness.

The Price Per Square Foot metrics show a positive trend, with the median Price Per Square Foot rising by 3.1% to $237.95, and the Median List Price per square foot increasing by 1.7% to $251.90. These figures suggest a steady appreciation in property values, despite the slight dip in the overall sales price.

In terms of sales activity, the number of Homes Sold has decreased by 0.7% year-over-year, totaling 1,799 units. Pending Sales have also seen a decline of 3.9%, with 2,311 transactions in the pipeline. However, New Listings have surged by 16.5%, reaching 3,136, which contributes to the increased inventory level of 8,561 homes, up by 11.1% from the previous year.

The Months of Supply, a critical indicator of market balance, has risen significantly by 50.0% to 4.8 months. This increase suggests a shift towards a more balanced market, potentially easing the competitive pressure seen in previous years. The Median Days on Market have also increased by 7.0% to 76 days, indicating that homes are taking longer to sell.

The average sale to list ratio has slightly decreased by 0.2%, now at 97.8%, while the percentage of Homes Sold above list price has dropped by 1.4% to 12.2%. These changes reflect a cooling in the market's competitive intensity. Additionally, the percentage of Price Drops has increased by 5.1%, now at 23.0%, suggesting that sellers are adjusting their expectations to align with current market conditions.

Finally, the percentage of homes going off the market within two weeks remains unchanged at 25.7%, indicating that a quarter of the listings are still attracting quick interest from buyers.

Overall, the Nashville housing market in January 2025 exhibits a mix of stability and adjustment, with sellers recalibrating their strategies in response to evolving market dynamics. The increase in inventory and New Listings, coupled with longer days on market, suggests a shift towards a more balanced environment, providing opportunities for both buyers and sellers to navigate the market with informed decisions.