Nashville Housing Market 2022: Prices, Trends & Forecast
The Nashville housing market is always one of the hottest housing markets nationwide. It’s known for performing better than the average housing market. Nashville is often seen as a desirable place to live, too. However, once the pandemic hit, this market began to overheat. Now, it’s showing signs of a massive downturn in the future. Keep reading to learn everything you need to know about the Nashville housing market prices, trends, and forecasts.
Nashville Housing Market Prices
Nashville housing market prices are still on the rise for this overheated market. According to Redfin, the median sale price for all housing types is up this year. The approximate house price is $463, 235, an increase of almost 16% yearly.
Single houses were the market’s most popular type of housing, and they saw a significant price increase. The median price of a single-family house on the Nashville housing market is $488,482, almost a 15% increase year over year.
Townhouses saw a 10% increase in price year over year, for a median price of $318,226.
Condos and co-ops also saw a price increase. The median price of this housing type is $487,500, a 17.5% increase year over year.
Nashville Housing Market Trends
Trends show that housing prices are up and sales are down. This October, 852 homes were sold on the Nashville housing market, a decrease of almost 35% compared to last year. Homes are spending an average of 43 days on the market, a 13-day increase year over year.
Most of the houses sold on the market were single-family homes. About 632 of the houses sold fell into this category, but that was still a decrease of almost 33% year over year. Single-family houses spend an average of 42 days on the market, an 11-day increase year over year.
Although townhouses are cheaper than single-family houses, they are not as popular. Only 92 houses sold on the Nashville housing market fell into this category. That’s almost a 50% decrease in sales year over year. Townhouses spend an average of 48 days on the housing market, an increase of 21 days year over year.
Condos and co-ops show the same Nashville housing market trends as other housing categories. About 119 houses fell into this category, almost a 32% decrease from last year. They spend an average of 55 days on the market, 28 more days since last year.
The housing market shows signs of finally starting to cool off a bit. Sales are down, and prices are up, impacting how many houses are selling at the list price. While many houses are, we’re seeing more homes with price drops in the Nashville housing market. Almost 39% of houses sold had price drops.
In addition, almost 19% of houses were sold above the list price. While that’s still a lot, it’s quite a decrease compared to last year. It means that more homeowners are not getting top dollar for their properties.
Since May of 2022, housing inventory in Nashville has increased by over 70%. According to this article, houses are selling slowly, and the market is showing signs of cooling off.
However, even though there are more houses available, that’s not the only reason buyers have slowed down. Mortgage rates are up nationwide, and economists are predicting a coming recession. That leads to many people feeling cautious about buying a home, even in a market like the Nashville housing market.
Nashville Housing Market Forecast
Moody’s forecast is that housing prices will start to dip next year. This is due to the surging mortgage rates, the high inventory, and people not buying as many houses. In the long run, this will result in a surplus of houses available in the market. Basic supply and demand call for a drastic price drop when that happens.
However, this doesn’t mean every interested buyer can purchase a home. As more people brace for the possibility of a coming global recession, more buyers are holding onto their cash instead of spending it.
Housing sales are estimated to continue to drop as mortgage rates soar short term. This will lead to a surplus of houses being available on the Nashville housing market. Then, buyers that are interested are going to start buying houses again. However, this could take a year or longer to happen.
Short term, sellers will slowly start to see sales go down, and buyers will remain wary of the housing market. Struggling to sell your house? Give us a call. We’re still buying houses in the Nashville area!
For investors, our best advice is to wait. Investing right now will lead to a short-term loss but a long-term gain. Investing after the housing prices drop will lead to long-term gains that you’ll love.
Buyers are advised to continue waiting. Long term, mortgage rates will come back down, as will housing prices. Waiting for the perfect time to buy is your best bet on the Nashville housing market.
Sellers will have a rough time on the Nashville housing market for some time. If you want to sell your house soon, it’s best to sell it now. To get the best price, check out this page to find cash buyers in your area. Buyers will enjoy the market turning to their favor over the next year. Investors need to hold onto their current properties and set back some cash to buy more when the global recession hits.