NASHVILLE, Tenn. (WKRN) — Greater Nashville home prices continue rising, up nearly 26 percent, according to the latest RE/MAX National Housing Report.
For the first time, the median home sale price in Greater Nashville has surpassed the $450k mark, now sitting at $451,750; a new record.
Those-desperate to get into the market- are hoping for a crash.
“We don’t know what’s in the immediate future, what’s in the midterm or long-term future, but what I think and I think most professionals and quote on quote experts would agree, and we could all be wrong is that at worst in our market we will see a little bit of leveling off and less competition but not any substantive downturn,” Jeff Checko said, Director of Relocation for RE/MAX Advantage.
Checko said sometime soon we’re bound to see a more level playing field for buyers and sellers.
“What I’m seeing out in the field and what the numbers at our particular firm and market wide are showing us is while the sales numbers are keeping up. While we’re still up year over year, the month-to-month jumps are slowing a bit, which is a positive sign. It’s something we all welcome,” Checko said.
Data from RE/MAX shows transactions are down 3.5 percent over last year, likely due to rising mortgage rates impacting monthly payments.
“I absolutely feel like people are shopping at a tier lower than they were before for the most part. And you’re going to see a reflection of that in the upcoming months in the third and fourth quarter,” Checko said.
As transactions fall, new listings are up, with active housing inventory up 12 percent over last year.
“You’re starting to see sellers now feeling like there’s a fear that maybe they missed the boat on capitalizing on the amount of equity they have,” said Checko. “While I don’t think that’s the case, I think they see not the end but like the sunset of this crazy sellers’ market off on the horizon.”
He continued, “It’s getting a little more urgency. So this selling season this spring and summer, we’ll see more people willing to sell than they were last year for certain.”
Helping with the inventory crisis even more, Mayor John Cooper recently announced he would be adding staff to both the planning and codes department to help building permits and approvals get out faster.
“We’re excited. We see Mayor Cooper proposing over 30 jobs for the codes department and another 15 or so for the planning department to help ease the burden on the staff that’s there.” Checko explained, “They just can’t keep up with the applications.”
Checko said. “We’re hoping all those decisions and measures will lead to an easier process moving forward and lead to more inventory.”