Greater Nashville Area Real Estate Market Update: January 2024
Looking to know more about what's happening with the crazy Nashville real estate market? You're in the right spot because I'm going to be sharing market trends from January 2024 covering Davidson, Williamson, and Rutherford counties.
In this update you'll learn:
Be sure to stick around till the end to know how this market could impact your future buying or selling goals.
Inventory Supply
In the month of January, we saw the inventory supply go up slightly from 3.45 months in December to 4.3 months in January.? Although it increased slightly, a 4 month supply keeps us on the cusp of a sellers market.?? But, what exactly does the inventory supply mean? This tells us how many months it would take for all of the homes currently on the market to sell.? We see 4-6 months of inventory as a balanced market which keeps prices steady, less than 4 months means there’s not a lot of inventory which drives prices up, and more than 6 months of supply means there are a lot of properties available and can drive prices down.? Good ol’ supply and demand!?
Average Price
The average home is selling for nearly $761,000.? This is up 2% from last month and up 12% from this time last year.? Keep in mind, this is the average price of the Greater Nashville Area so we have Rutherford County coming in at $467,000, Davidson County at $689,000, and Williamson County leading the charge with an average home sales price of nearly $1.3 million dollars. We did see prices in both Rutherford and Davidson decline from last month while Williamson increased.
List To Sale Price Ratio
Taking a look at what the houses were listed for vs what they actually sold for brings us an interesting view into the effectiveness of negotiations, pricing strategies, and influence on buyer perceptions.? Our average list-to-sale ratio is sitting at 72% and we saw quite an increase on that since last month which was at 55%.? Meaning, we saw the sales price of the home get closer to what the list price was; vs. in December there was a lot of room between what the homes were being listed for vs what they actually sold for.?
We do see all three counties pretty even with Davidson and Williamson at 72% and Rutherford at 80%? Keep in mind when looking at this stat, it has a lot to do with the strategy the seller is using when listing their home.? Underpricing can lead to bidding wars while overpricing can lead to price reductions.
Days On Market
So exactly how long is it taking for properties to sell?? We are currently sitting at an average of 35 days for a home to sell in this market.? This is up 26% from last month and 5% from last year where the average was 33 days.? We do see the days on market vary slightly between counties; Williamson is the longest right now at 38 days on market, Davidson is at 36 days, and Rutherford is the fastest right now coming in at an average of 32 days on market.
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Interest Rates
Interest rates continued to see some relief averaging 6.75% on a 30 year fixed mortgage.? This is slightly higher than what we were seeing this time a year ago, but as we know, there was a significant increase in rates as 2023 went on.? The good news is, although on par with a year ago, the rates have decreased from the 6.98% we saw in December.? Of course, it’s best to speak with a trusted lender directly for your own personal situation and our local market here in the Greater Nashville area. If you need a recommendation, I’d be happy to refer you to a few expert partners I have.
Market Trends & Insights
The start of the new year in the Greater Nashville Area revealed a slight decrease in inventory supply, with a shift from 3.45 to 4.3 months, indicating a market teetering on the edge of favoring sellers. Despite this, the average home price surged to $761,000, marking a 2% increase from the previous month and a substantial 12% surge year-over-year. Notably, Rutherford and Davidson counties experienced price declines, contrasting with Williamson County’s increase to nearly $1.3 million.?
Negotiation dynamics were apparent, with the average list-to-sale price ratio improving significantly to 72%, indicating a narrowing gap between listing and sale prices.?
The average time for properties to sell increased to 35 days, with Williamson County showing the longest duration at 38 days, followed by Davidson at 36 days, and Rutherford proving the fastest at 32 days.?
Interest rates remained relatively stable at 6.75% for a 30-year fixed mortgage, offering a slight decrease from the previous month’s 6.98%, presenting opportunities for prospective buyers to explore the market with confidence.
What Does This All Mean For YOU As A Seller Or Buyer?
For prospective buyers and sellers in the Greater Nashville Area, the current real estate trends have implications worth considering.?
As a seller, the shift towards a seller’s market suggests favorable conditions, but strategic pricing and negotiation approaches remain crucial in maximizing returns. The rising average home price indicates a potential opportunity for sellers to capitalize on the market’s upward momentum.?
On the buyer’s side, the lower list-to-sale price ratio might present negotiating opportunities, especially in areas where the ratio has declined. However, buyers should be mindful of the competitive landscape, with properties taking an average of only 35 days to sell. Additionally, with mortgage rates showing a decline, now might be an opportune time for buyers to explore their options and potentially secure favorable financing terms at a great price.
Let's Get Personal!
In navigating these trends, whether you’re in the market for a new home or considering selling, your unique circumstances deserve personalized attention. While general market updates are great, I offer a comprehensive analysis for your home or valuable insights for your house hunting journey.
Reach out by clicking the link below and we’ll schedule time to look at your specific needs and situation.? In the meantime, be sure to check out my other content and I’ll be back next month with another market update!?