Tennessee Housing Market: September 2024 Analysis
The Tennessee housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $383,700, reflecting a slight decrease of 0.6% year-over-year (YoY). Meanwhile, the Median List Price is $406,700, showing a marginal decline of 0.1% YoY. This indicates a slight softening in home prices, which could be attributed to changing market dynamics.
Despite the decrease in sales prices, the median Price Per Square Foot has increased by 3.4% YoY to $208. This suggests that while overall home prices are slightly down, the value per square foot is appreciating, indicating a potential shift in buyer preferences towards smaller, more efficiently priced properties. Similarly, the Median List Price per square foot has risen by 5.7% YoY to $222, further supporting this trend.
In terms of sales activity, the number of Homes Sold in September 2024 is 7,068, marking a 4.0% decline YoY. Pending Sales have also decreased by 1.5% YoY, totaling 8,025. However, New Listings have increased by 4.3% YoY to 9,457, suggesting that more homeowners are entering the market, possibly in response to the increased inventory levels, which have surged by 19.9% YoY to 29,379. This rise in inventory has contributed to a significant increase in the Months of Supply, now at 4.20 months, up 90.0% YoY, indicating a shift towards a more balanced market.
The Median Days on Market for homes in Tennessee is now 57 days, reflecting a 7.0% increase YoY. This suggests that homes are taking longer to sell, which could be a result of the increased inventory and slower sales pace. The average sale to list ratio has slightly decreased by 0.4% YoY to 97.6%, indicating that homes are selling closer to their list prices, albeit with some negotiation.
The percentage of Homes Sold above list price has decreased by 2.7% YoY to 16.6%, while the rate of Price Drops has increased by 2.3% YoY to 28.2%. This indicates that sellers may be adjusting their expectations in response to the current market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 5.3% YoY to 31.5%, further highlighting the slower pace of sales.
Overall, the Tennessee housing market in September 2024 is characterized by a slight decline in sales prices and a notable increase in inventory, leading to longer selling times and more price adjustments. Buyers may find more opportunities in this evolving market, while sellers may need to adjust their strategies to align with the current conditions.
