It’s been a rollercoaster in real estate the last few years, and this Spring has been no exception. As interest rates rose, many Buyers took a pause out of fear they would drop again pay too much. Then as they got used to the idea that 6.5% is actually not terrible, just not the bargain rate of the previous years, they re-emerged ready to buy…but prices are still climbing, so they know waiting will likely cost them even more…so it’s still a Seller’s market.
Below shows where we are on inventory and pricing in Davidson county, as well as across our entire Middle TN MLS.
Less than a 6 month supply of homes indicates a Seller’s market, and more than 7 months a Buyer’s market. The ideal balanced market is 5-6 months supply. Above you can see we are at 2.9 for the entire MLS and 3.0 for Davidson county. While we have eased out of the drastically low supply from previous months, which offers Buyers more options than they have seen in awhile, it’s not a Buyer’s market currently.
Below we look at how much prices have risen since 2010 – affordability is an issue nationwide, but we seem to be feeling the squeeze in Nashville more than many other markets. Average price per sf in Davidson county and average sales price are shown below. $311 sf and $600,152 respectively. As you can see, we had more stable and healthy growth until the pandemic market sent prices soaring.
So what does this mean going forward? Despite higher interest rates and bank failures, Buyers are still finding themselves competing for the best homes. Those that are well priced, with good locations and condition are not sitting. Sellers are still able to cash in on hard earned equity, but not quite as much % over list price as 2020-Q1 2022.
If you’re curious about the current value of your home, I’m happy to help.
One of my favorite events was back for the first time in 3 years last weekend. Seasoned Sunday gathers local purveyors and chefs at Wedge Oak Farm with live fire cooking to raise money for a cause they collectively choose. This time it was for Patchwork, a non-profit organization that dedicates their efforts to providing nutrient dense, restaurant inspired meals to people experiencing hardships in the Nashville area.
It was a cool and crisp day to sit by the firepits and enjoy an array of tasty bites and sips.
Until next time!