Nashville, TN Metro Area Housing Market Analysis - August 2024
The Nashville, TN metro area housing market has exhibited a variety of trends as of August 2024. The Median Sales Price for homes in the region stands at $455,000, reflecting a slight decrease of 1.7% year-over-year (YoY). Conversely, the Median List Price has risen by 3.1% YoY to $495,000, indicating a divergence between seller expectations and actual sale prices.
The median Price Per Square Foot has seen a marginal increase of 0.4% YoY, now at $237.86. Similarly, the Median List Price per square foot has increased by 2.8% YoY, reaching $252.07. These figures suggest a relatively stable pricing environment on a per-square-foot basis, despite the overall decline in Median Sales Prices.
In terms of market activity, the number of Homes Sold has decreased by 4.8% YoY, totaling 3,041 units. Pending Sales have also seen a decline, down 1.9% YoY to 2,955 units. However, New Listings have increased by 3.0% YoY, with 3,543 new properties entering the market. This increase in New Listings, coupled with a 12.0% YoY rise in inventory to 9,749 units, suggests a growing supply of homes available for purchase.
The Months of Supply, a critical indicator of market balance, has surged by 50.0% YoY to 3.20 months. This significant increase points to a shift towards a more buyer-friendly market, as more inventory is available relative to the pace of sales. Additionally, the Median Days on Market has increased by 8.0% YoY to 53 days, further indicating a slower market.
The average sale to list ratio has seen a slight decline of 0.2% YoY, now at 98.3%. This suggests that homes are selling for slightly less than their listed prices. The percentage of Homes Sold above list price has also dropped by 4.4% YoY to 14.7%, indicating fewer bidding wars and competitive offers.
Price Drops have become more common, with 30.3% of listings experiencing a reduction in price, up 1.8% YoY. Additionally, the percentage of homes going off the market within two weeks has decreased by 8.1% YoY to 29.5%, further highlighting the slower pace of sales.
Overall, the Nashville, TN metro area housing market is experiencing a period of adjustment. While sellers are listing homes at higher prices, actual sales prices are slightly declining. Increased inventory and longer days on market suggest a shift towards a more balanced or even buyer-favorable market. Buyers may find more opportunities and negotiating power, while sellers may need to adjust expectations and pricing strategies to align with current market conditions.
