NASHVILLE, Tenn. (WKRN) — As News 2 continues to track the growth and progress of Music City in our Nashville 2021 reports, we’re keeping an eye on Nashville’s record-breaking real estate market.
Despite uncertain times, Zillow data shows the housing market thrived last year, but not all types of housing were red hot.
As the market heated up for single-family homes in 2020, the condo market cooled, with rising inventory and a higher share of listings with price cuts.
Data shows the nation’s condo market failed to keep pace with the single-family home segment across a broad range of indicators last year. The same rings true in Nashville.
“My son has been living in a condo during all of this and their amenities have been shut down they have felt like they’ve been imprisoned so they’ve gotten out,” Maria Holland, a realtor with RE/MAX Homes and Estates, Lipman Group said. “The appeal to people living in [condos] is kind of gone, plus you have all this re-location from out of state and they’re not necessarily not looking to be downtown or in an urban area, a lot of them are looking to be out where there is green space.”
Experts at Zillow say condos provide a unique opportunity for prospective buyers looking for a foot in the door, especially in markets like Nashville, where house prices have risen out of reach or where proximity to urban centers is a priority.
“Right now many amenities that make condos appealing, like gyms, pools, and community spaces, are not fully open. But in a post-pandemic world, it’s likely these amenities will come back in full force and become an attractive selling point,” Nicole Bachaud, economic data analyst at Zillow said.
Moving forward, it is likely these amenities will come back in full force in a post-pandemic world.
In the Nashville metro:
- The median sale price for a condo was $252,683 in November, $77,317 less than for a single-family home.
- The sale price was up 0.30% year over year in November, compared to 9.5% for a single-family home.
- Available inventory for condos in December was down 0.60% compared to the year prior, whereas single-family homes were down 25.4%.
“I think there’s two relative advantages of condos,” Chris Glynn said, senior economist at Zillow. “The first is affordability and the second is there will be more choices currently in the condo market because of relative additional inventory compared to the single-family home market so potential buyers may have a condo that fits their needs more than they would a single-family home.”