Tennessee Housing Market Analysis - August 2024
The Tennessee housing market in August 2024 presents a nuanced picture with various indicators showing both positive and negative trends. This analysis delves into the key metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The Median Sales Price for homes in Tennessee stands at $385,500, reflecting a slight decrease of 0.8% year-over-year (YoY). In contrast, the Median List Price has increased by 1.9% YoY, reaching $410,100. This divergence suggests that while sellers are optimistic, buyers are negotiating prices down, possibly due to increased inventory and longer market times.
Price Per Square Foot
The median Price Per Square Foot for Homes Sold is $208, up by 1.8% YoY. Similarly, the Median List Price per square foot has risen by 6.3% YoY to $223. These increases indicate a steady appreciation in property values, albeit at a slower rate for sold properties compared to listed ones.
Sales and Inventory
The number of Homes Sold in August 2024 is 8,090, marking a 4.3% decline YoY. Pending Sales have also dropped by 5.4% YoY to 8,800. However, New Listings have increased by 2.7% YoY, totaling 10,122. Inventory has surged by 18.5% YoY to 28,494 homes, contributing to a significant rise in the Months of Supply, which now stands at 3.5 months, up by 70.0% YoY. This increase in inventory and supply suggests a shift towards a buyer's market.
Market Dynamics
The Median Days on Market for homes in Tennessee is now 55 days, an 8.0% increase YoY. The average sale to list ratio has slightly decreased by 0.5% YoY to 97.6%, indicating that homes are selling closer to their list prices. The percentage of Homes Sold above list price has dropped by 5.5% YoY to 16.2%, further emphasizing the cooling market conditions.
Price Adjustments and Off-Market Trends
Price Drops have become more common, with 30.5% of listings experiencing reductions, up by 3.7% YoY. Additionally, the percentage of homes going off-market within two weeks has decreased by 7.4% YoY to 31.1%, suggesting that homes are taking longer to sell.
In summary, the Tennessee housing market in August 2024 is characterized by increasing inventory, longer market times, and a slight decline in sales prices. While sellers remain optimistic with higher list prices, buyers are leveraging the increased supply to negotiate better deals. This evolving landscape indicates a shift towards more balanced market conditions, offering opportunities for both buyers and sellers.
