November Nashville Real Estate Market Update
We have seen a lot of change in the real estate market in the Middle Tennessee area over the past few months. While the real estate market continues to change, many locals and out of state residents alike question where we are going. We constantly have the news feeding us daunting headlines about where the market is going, when is it the right time to buy or sell, among other questions.However, while it does seem confusing and unpredictable, it’s not as bad as the news makes it seem.
Starting off, the common theme for headlines nowadays is crash, recession, and skyrocketing prices. But you have to keep in mind that the news likes to sensationalize; they pick and choose their information and run with it. The real estate market is changing, but what is happening across the country is not necessarily what’s happening here. Trends show that inventory has been going up, the number of closings has dropped a little bit. Are we headed to a real estate crash? No, it does not.
Though homes are sitting on the market a bit longer than usual, it does not indicate a crash. There has been a high demand for homes, but there is a limited inventory. Which is not sustainable. However, when it comes to Nashville, we are seeing an upward trajectory. The Middle Tennessee area is in a sellers market, which means we are seeing a higher demand for on-market properties. Right now, the conditions are still favorable for sellers, which is great news if you are looking to sell.
On the buyer side, another thing to consider is interest rates, they have gone up. Unfortunately, there is nothing that can be done about it. But consider this, "marry the house, date the rate". There are options for sellers to consider refinancing. So, you may be asking, well what if rates keep going up? Everytime the interest rate goes up, that is costing you 10% of your buying power. If you’re contemplating on waiting for things to normalize, we cannot say when things will be ‘normal’.
As of September 2022, the numbers in Franklin show that a median home sale price is $868,750, which is a 25% rise from the previous year. Whereas in Brentwood, it’s $1,100,00, a 20.6% increase. As for Nolensville, the median home sales price is $762,436, which has risen to 33.6%.
Moreover, the buyer must consider the 2-1 buydown, which means that the buyer’s interest in the first year is 2% and then the second is 1%. A general rule of thumb, for every $10,000 equates to $50 in a payment. Say for example, a home you’re interested in costs $350,000, and go ahead and do the 2-1 buydown, depending on the interest rate numbers, it would potentially save you $220.
In summary, despite what the headlines are reporting, it is not it seems. The Middle Tennessee area is in a favorable position, and is constantly growing. Feel free to check our latest video on the latest trends. If you have any questions or are interested in moving to the Middle Tennessee area we’re here to help you. You’re welcome to schedule a call or fill out the contact form below.