NASHVILLE, Tenn. (WKRN) — Realtors call this an unprecedented time. In Greater Nashville, home prices are up 2.3% year-over-year. Inventory is up too, and new construction is a big part of that uptick in inventory.
Tennessee is famous for its hills, and one new Nashville development takes full advantage of that beauty. “This is called The View at the Woodlands, and we’ve got 45 unique custom homes here,” said Jeff Checko, relocation director with the Ashton Real Estate Group of RE/MAX Advantage.
It’s Checko’s job to start selling those homes in this challenging time in the housing market.
“Interest rates have remained at or above 7% for several months,” said Checko. “We’re starting to feel it in terms of people feeling anxious about making a move.”
According to the new RE/MAX National Housing Report, Greater Nashville homes are sitting on the market longer – 33 days compared to 24 last year. And, inventory is up 15.1% over last year.
“Open houses are popular again,” said Checko.
Typically, new construction makes up 10% of inventory, but currently, nationally, it’s at 30%. For Checko, that means selling a new build will just take a little more creativity. “That’s the way it works. It’s like supply and demand. If people aren’t buying, the market’s going to respond. Banks and builders and sellers are going to do whatever it takes to motivate people.”
That means builders offering incentives such as buydowns. But he admits that the next few months will be very important. If interest rates remain above 7% much longer, we could see inventory pile up even higher.
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“Something has to give. And so hopefully it’s a healthy combination of prices coming back down to Earth a little bit, not where people get hurt. But rates coming back down too, so people can just move about the cabin.”
According to the RE/MAX Housing Report, the median home sales price is $450,00 in Greater Nashville.