It’s been a hot real estate market in Nashville over the last few years but we might be seeing a cooling trend. Sellers are dropping prices and buyers are getting more incentives from competitive sellers. This trend began in fall 2018 and has been delivering lower gains to home prices each quarter. However, homeowners and sellers are still enjoying rising prices but at a more modest rate. The hottest time for home prices rose to 32% from spring 2016 to spring 2018. Nashville may be slowing down faster than the rest of the nation but prices are not falling too far.
Rental prices are also slowing down as well and year-over-year just rose one and a half percent to a median rent of about $1512 per month. The Nashville Metro area slid from the third to the 14th fastest-growing real estate market among the nation’s largest cities. But, many cities are experiencing similar market deceleration with the most extreme downturns in places like San Francisco and Seattle. This is to be expected, however, because these places saw such an incredible and unsustainable pace. When prices go too far too fast, demand will start to fall back and appreciation slows down creating a more balanced market.
The Nashville real estate market hit its all-time peak in the third quarter of 2017 and although prices continue to rise they’ve slowed slightly. That quarter was a time of record investment in new offices and new construction permits but there will always be levels in the real estate market. Nashville, however, is not decelerating as fast as other places and we’re not seeing a slowing of new people moving to the Nashville area.
Many property data analysts saying this is a healthy correction and will continue with smaller gains throughout the next year. Interest rates are expected to continue to increase slowly putting more pressure on buyers but this isn’t bad either. This is creating a more healthy market after years of housing price increases outpacing wage gains. A balanced market is warehousing moves closer to people’s income and at a peak in 2017 31% of buyers paid more than the listing price for homes because of the competition. In 2019 only 13% of buyers paid more than the asking price and while that’s still high, it’s putting us on pace for a more balanced market.
For more information on Nashville’s housing market please contact our office today or if you’d like to know more details on homes and real estate for sale within a particular community or neighborhood simply contact us below would be happy to send you a personalized list.