Tennessee Housing Market: Stability Amidst Shifting Dynamics
The Tennessee housing market in November 2024 presents a stable yet evolving landscape, characterized by a balance between steady pricing and dynamic sales activity. The Median Sales Price remains unchanged year-over-year at $388,500, indicating a stabilization in home values. Meanwhile, the Median List Price has seen a modest increase of 1.4% to $404,700, suggesting a slight upward pressure on asking prices.
Price Per Square Foot metrics reveal a more pronounced growth, with the median Price Per Square Foot rising by 3.8% to $210, and the Median List Price per square foot increasing by 5.2% to $221. This indicates a stronger appreciation in property value on a per-square-foot basis, reflecting potential demand for more compact or efficiently designed homes.
Sales activity in Tennessee is robust, with Homes Sold increasing by 3.5% year-over-year to 6,591 units. Pending Sales have surged by 10.2%, reaching 7,177, which could signal continued strong sales in the coming months. However, New Listings have decreased by 6.4% to 7,291, suggesting a tightening in the availability of fresh inventory.
The inventory of homes has expanded significantly, up 12.7% to 28,065 units, contributing to a substantial increase in the Months of Supply, now at 4.3 months, a 40% rise year-over-year. This increase in supply could provide more options for buyers, potentially easing competitive pressures in the market.
Market dynamics show a slight cooling, with the Median Days on Market increasing by 7% to 60 days, indicating that homes are taking longer to sell. The average sale to list ratio has dipped slightly by 0.2% to 97.4%, and the percentage of Homes Sold above list price has decreased by 2.4% to 15.3%, reflecting a more balanced negotiation environment between buyers and sellers.
Price adjustments remain relatively stable, with Price Drops marginally decreasing by 0.3% to 23.7%. The percentage of homes going off the market within two weeks has declined by 3.8% to 27.2%, suggesting a slower pace in the market's turnover.
Overall, the Tennessee housing market in November 2024 is characterized by stable pricing, increased inventory, and a moderate pace of sales, providing a balanced environment for both buyers and sellers. The market's dynamics suggest a shift towards a more normalized state, with opportunities for strategic buying and selling decisions.
