by TJ AndersonWe work on new-construction and renovation projects in Nashville all the time, so home design concerns — paint colors, tile choices, kitchen finishes — are a big part of my life
Nashville Real Estate Market Finally Sees Some Inventory Relief
by TJ Anderson
There are a lot of different reasons why the Nashville real estate market has boomed over the last handful of years.
We’ve seen massive cultural growth here in Nashville, from restaurants to a playoffs-clinching hockey team to a heap of attention from that onetime prime-time drama named after our city. We’ve seen huge job growth, with Nashville ranking third in the entire U.S. in 2017, according to data from the Bureau of Labor Statistics. That all creates a draw, and a draw creates an influx of new residents, and an influx creates demand.
With that demand, we need housing supply, and for years during our “It City” boom, Nashville just hasn’t been able to keep pace.
"If I was to characterize Nashville for the last few years, we'd be looking at really constrained inventory. There are very few homes for sale for the demand, the amount of people looking,” Zillow senior economist Skylar Olsen told WKRN last year.
The obvious result: growing demand and dwindling inventory create a speedy rise in Nashville home prices — which has been nice for Nashville home sellers, tough for new Nashville homebuyers, in particular.
Just to put a fine point on it: In five years, the median home sales price in Nashville rocketed from about $205,000 to about $315,000 now. That’s significant.
The good news for new Nashville home buyers
I’ve talked a lot on our blog about the what, why and how much behind Nashville’s booming real estate market, but here’s something of a new twist: We’re finally seeing inventory pick up in a significant way.
According to data from Greater Nashville Realtors, the residential inventory at the end of June, 2018 was 11,087 — an impressive 25-plus-percent increase from June of 2017 (when we were closer to 8,800).
This is good news for buyers, who’ll have more options, and, as we move forward, probably more breathing room for making offers too.
The latter point hasn’t quite hit the ground yet. The average days on the market for a single-family home in Nashville was still 26 days in June, 2018, and that’s… fast. Consider what we were looking at when WKRN wrote the Nashville housing-market piece referenced above: Homes were staying on the market for about 60 days in 2017 and that was touted as a big win for sellers.
Nashville home prices are still rising steadily, too. In June 2017, the median residential price in Nashville was $293,753. This June: $314,900.
The bottom line for Nashville home sellers and buyers
My take: I don’t expect the pace of home sales to slow significantly in the coming months, but with inventory moving closer to demand, I think we’ll see buyers finding more and better home listings to consider, and for home prices to keep rising, just at a slightly more reasonable pace.
So: a healthier Nashville real estate market, essentially.
Curious about what’s out there right now? Take a look at homes on the market in Nashville now, and if you have any questions (or would like to get started hunting for a new home, or getting your Nashville home ready to list), call or email TJ Anderson Homes here.
Homes pictured here: 3524B Sanford Ave. in Nashville and 3524A Sanford Ave. in Nashville, both on the market as of this posting. Let us know if you'd like to know more about either, or if you'd like to set up a showing!
TJ Anderson is a Nashville Realtor with Benchmark Realty who's helped countless clients both buy a home and sell a home in Nashville, Tennessee. He blogs about Nashville regularly, from Nashville-area....
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