Tennessee Real Estate Market Insights for July 2024
Analysis of the Tennessee Housing Market - July 2024
The Tennessee housing market in July 2024 presents a mixed landscape, characterized by both growth and contraction in various key metrics. This analysis delves into the specifics of these metrics to provide a comprehensive overview of the current state of the market.
Median Sales Price
The median sales price in Tennessee for July 2024 stands at $388,900. This figure represents a slight decrease of 0.03% year-over-year (YoY). Despite this minor decline, the market remains relatively stable in terms of sales prices, indicating a balanced demand and supply scenario.
Median List Price
The median list price is currently $407,200, reflecting a 1% decrease YoY. This decline suggests that sellers are adjusting their expectations in response to market conditions, possibly to attract more buyers in a competitive environment.
Price Per Square Foot
The median price per square foot has increased by 2% YoY, reaching $209. This rise indicates that while overall prices may have slightly decreased, the value attributed to each square foot of property has appreciated, suggesting a demand for quality and well-utilized space.
List Price Per Square Foot
The median list price per square foot has seen a significant increase of 6% YoY, now at $221. This increase further underscores the trend of rising property values on a per-square-foot basis, highlighting the premium placed on space efficiency and property quality.
Homes Sold
The number of homes sold in July 2024 is 8,243, marking a 6% increase YoY. This uptick in sales volume indicates a healthy market with active buyer participation, likely driven by favorable economic conditions and attractive mortgage rates.
Pending Sales
Pending sales are recorded at 8,885, showing no change YoY. This stability in pending sales suggests a consistent level of buyer interest and transaction activity, maintaining a steady flow of properties moving through the sales pipeline.
New Listings
New listings have surged by 13% YoY, totaling 10,639. This significant increase in new listings indicates that more homeowners are looking to capitalize on the current market conditions, potentially driven by the rising per-square-foot values and a robust demand environment.
Inventory
The inventory of available homes has increased by 22% YoY, reaching 28,749. This substantial rise in inventory suggests that the market is becoming more favorable for buyers, with a greater selection of properties available, which could also be contributing to the slight decrease in median sales prices.
Months of Supply
The months of supply have increased dramatically by 50% YoY, now standing at 3.5 months. This increase indicates a shift towards a more balanced market, where the supply of homes is better aligned with buyer demand, reducing the pressure on prices.
Median Days on Market
The median days on market have increased by 4% YoY, now at 50 days. This slight increase suggests that homes are taking a bit longer to sell, possibly due to the higher inventory levels and more cautious buyer behavior.
Average Sale to List Price Ratio
The average sale to list price ratio remains unchanged YoY at 0.98. This stability indicates that homes are generally selling close to their list prices, reflecting a balanced negotiation dynamic between buyers and sellers.
Sold Above List Price
The percentage of homes sold above list price has decreased by 5% YoY, now at 18%. This decline suggests that buyers are becoming more price-sensitive and less willing to engage in bidding wars, likely due to the increased inventory and more options available.
Price Drops
The percentage of price drops remains unchanged YoY at 31.68%. This consistency indicates that sellers are still adjusting their prices to meet market expectations, reflecting a dynamic pricing environment.
Off Market in Two Weeks
The percentage of homes going off market within two weeks has decreased by 7% YoY, now at 35%. This decline suggests that homes are taking longer to sell, likely due to the increased inventory and more cautious buyer behavior.
In conclusion, the Tennessee housing market in July 2024 exhibits a blend of stability and growth, with key metrics indicating a balanced and dynamic environment. While median sales prices have seen a slight decline, the increase in price per square foot and new listings points to a robust demand for quality properties. The significant rise in inventory and months of supply suggests a shift towards a more balanced market, providing buyers with more options and reducing the pressure on prices. Overall, the market remains active and competitive, with both buyers and sellers adjusting their strategies to navigate the evolving landscape.
