Fewer homes are selling above asking price across the U.S., including in Nashville.
According to Zillow, February is a great time to buy a house in Nashville! That’s because there are more homes for sale, meaning fewer homes are selling above asking price, and in many instances, sellers are lowering their starting price.
Aaron Terrazas, Zillow Senior Economist, told News 2, “Over the course of the year, about a quarter of homes sold above list. That’s closer to 25 percent during the first part of the year and closer to 16 percent by the end of the year.”
Another reason it’s a good time to buy– lower interest rates.
“Right now, it does feel like the housing market is living and dying by interest rates, by what happens with that. Interest rates hit seven-year highs in November but they’re back down to about as low as they’ve been in a year over the past month, month and a half. But I think lower interest rates could heat up the market again this spring if they stay low,” Terrazas said.
If you’ve purchased a home in the Nashville area, you’re likely familiar with bidding wars. How frustrating to find a house you love, offer the asking price, only to be outbid by another buyer. It was happening a lot in the Nashville area.
Terrazas said, “I think sellers, in particular, have become accustomed to the crazy market we’ve had over the past couple of years. They could list aggressively and often find a buyer willing to pay that. I don’t think that’s as necessary the case, it was such a strong closure market for years. The pendulum is shifting more toward buyers and so sellers need to be conscious of that.”
The amount of time a home usually sits on the market before a seller should think about lowering the asking price varies from market to market.
“In a place like Nashville, I’d say anywhere from two weeks to a month,” Terrazas said.
Economists say among the 50 largest markets in the U.S., Nashville saw the steepest decline in the number of homes that sold over list price from 2017 to 2018. The share of homes sold above list was 22.3 percent in 2018– down from 28.8 percent in 2017.