NASHVILLE, Tenn. (WKRN) — Realtor.com’s August housing report just dropped, and Nashville stands out. The number of new homes listed for sale on the market is down – and by a lot, too.
“It’s a number that we pay attention to because it’s a great leading indicator for home sales going forward,” said Danielle Hale, chief economist, Realtor.com
Hale said newly listed homes in Nashville – the ones that just hit the market – are down 27.2%. On Realtor.com’s list, that’s the biggest drop in the country.
“A big part of the reason is that a lot of existing homeowners are choosing to stay put instead of selling,” said Hale. “So, there aren’t as many sellers this year compared to last year. And buyers who are out there looking for homes are probably feeling that.”
Hale said that imbalance has helped to keep prices high here in Middle Tennessee. Unlike many others, Realtor.com has not called for declining home prices, but they have adjusted their forecast.
“Home prices could go largely sideways for the next several years and give buyer incomes a chance to catch up. And that may be what we see because there is such a big imbalance between supply and demand.”
And with the country in a home-building deficit that could take two to five years to dig out of, experts say that prices might not decline significantly any time soon.
Interesting note, although new listings are down 27.2%, year-over-year active listings are actually up 12.6% in Nashville.