Nashville Real Estate Market Update
Nashville Real Estate Market
Where did the Nashville Real Estate Market finish at the end of 2022? Where are the experts predicting we are heading in 2023? The numbers from the Greater Nashville Realtors Association just came out and it shows that we are actually down when it comes to our closings for all of 2022 compared to 2021, which doesn't really come as much of a surprise because we have seen our market really pump the breaks since about the end of April of this year. But, let's take a look at the numbers.
December 2021 to December 2022
Closings for all of 2022, were down 15% from all of the closings in 2021. Now when we look at December, that number's going to be even greater. The total number of closings for December 2022 compared to December 2021, they're actually down 40%. Now, I know that if you start to hear the numbers down, especially with the way that the media does their headlines, it can sound really scary! It's not that much of a surprise that we're actually down in December because December historically is a month when we see fewer closings as we close out the year. But what we saw in 2021 was actually contrary to what the traditional December market looks like. So when we're saying that year-over-year, December closings are down 40%, we are actually seeing a far more normalized market than what we saw in 2021. 2021 was an anomaly in terms of what was happening in December.
Find Someone You Can Trust
When we're looking at that 40%, before you start grabbing onto those headlines out there that say the market's crashing, our market is not expected to crash. We really have to keep that in mind in terms of what may be happening in another city may not be the story of what's happening here in Nashville. What is expected to happen? The best thing that you can do is to talk to a trusted real estate advisor and see what is happening in the market that you're looking to move to. Find somebody that you trust and you can take their advice because, at the end of the day, it's really those tried and true real estate agents that really care about their business that are going to give you the best information possible, so that you can hopefully make the best decision possible for you.
At the end of December, one of the "positive up numbers" was our inventory. Our inventory was up about 5,000 more properties in December 2022 versus December 2021. So with inventory being up, what does that mean for 2023? It means that there's going to be more opportunities for buyers heading into 2023 and beyond. 2023 overall is anticipated to be bumpy as we find our way through it. So, interest rates are expected to fluctuate. As of right now, they're not seen to fluctuate in a massive way, but there will be fluctuations from what everyone is saying so far, so we can anticipate that happening.
But with a rise in inventory, it also means more opportunities for buyers, which is great news for buyers because here's the thing, if we're thinking about interest rates and we're looking at inventory, there really is a great window of opportunity. With this kind of opportunity, buyers don't necessarily have to make snap judgments. They can take their time to process and pick a house, which means there's going to be more of an opportunity for true buyer satisfaction instead of having buyer's remorse.
The Nashville Economy
Nashville, and the state of Tennessee in general, has been named the fastest-growing economy in the country, and we are seeing continually record-low unemployment rates. Across the state, we're actually sitting at 3.2% of unemployment. But, here in the Nashville area, as of November 2022, we saw an unemployment rate of only 2.6%. We continue to see businesses relocate to Nashville, which continues to bring jobs. We continue to see a relocation population come into the Nashville area, and sometimes that's for business, sometimes it's personal, sometimes it's both. But, mentioned in other recent updates, in terms of the market update, we do know that another 200,000 people are expected to land in the Middle Tennessee area by 2025.
The Caitlin Martin Team is ready to help!
If you are thinking about making a move to Nashville, or if you have questions about the Nashville real estate market, please do not hesitate to reach out to me, myself and my team, we would love to talk to you. If you are ready to start that conversation, there's a link down below that you can click to go ahead and get the conversation started. Otherwise, if you're not quite ready, that's okay too! We have a free Nashville relocation guide here. If you ever need anything, we are here and happy to talk to you. All of our contact information can be found here.