Happy Spring! As it was with spring bulbs waking up early, a warm February also woke up the Nashville Housing Market earlier than usual. Despite interest rates being a half point higher than they were last February, there were more closings, more homes added to the market, and the highest median price since last July.
Insights
- Average Days on Market was an exact match.
- Median Home Price increased by 6.42% ($28,870).
- Median Condo Price increased by 2.44% ($8,090).
- Residential (single-family and condominium) Inventory increased by 6.67% (451 properties).
- Residential Sales increased by 0.52% (9).
- The ratio of closings to inventory shows a 3 month supply, with a 4.04% increase in supply from this February over last.
Nashville Real Estate Market
The average 30 year mortgage interest rate was 6.78% in 2024 and 6.26% in 2023. That increase lowers borrowers’ buying power. One might expect that to mean prices would go down and/or sales would decrease. However, with higher interest rates, median prices and total sales also increased. This shows a growing market with Buyers who are ready and eager to buy. If anything, interest rates may be pushing against rapid price growth and helping to somewhat balance our market in the face of our substantial housing shortage.
Comparing February’s growth over January’s housing market is also helpful. The median home price increased from $460,000 to $478,870. Residential closings increased by almost 20% while inventory barely moved (.47%). Therefore, our briefly balanced market in January with a 4.07 month supply, became a Seller’s market again with a 3.41 month supply.
US Housing Market
This is in line with national trends for existing home sales also being strong last month. The National Association of Realtors’ Existing Home Sales Report released today also shows increases in closings, inventory, and prices.