NASHVILLE, Tenn. (WKRN) — Trying to buy a house in Nashville the last several years has been a bit of a blood bath, but new data shows the housing market may be settling down and experts say buyers are reaping the benefits.
Between bidding wars and sight-unseen offers, homebuyers getting their foot in the door has been no easy task over the last several years.
“Home prices went up about 50% since the pandemic started. And then really on top of that, interest rates went up and that also decreased people’s buying power by about 25 to 305,” 2022 President of Greater Nashville Realtors Steve Jolly said. “So if you add those two things together, really, we’re close to prices doubling in the last two years.”
Greater Nashville Realtors’ latest numbers show things are starting to “normalize.”
The Nashville area has more inventory than this time last year. At the end of August, we had 9,302 homes for sale, versus 5,246 this time last year. August also had 636 fewer closings in August 2022 compared to August 2021.
“You’ll see buyers having more choices and not feel pressured or rushed to make an offer. You’ll also see buyers have more options on their offers- they won’t have to waive an appraisal, they won’t have to waive an inspection contingency,” Jolly said.
Jolly said buyers shouldn’t panic. Overall, home values are still up, and Nashville’s market is still expanding.
He also noted buyers have been more hesitant due to rising interest rates, however, historically rates are still favorable.
“Most people expect us to be in a recession either in 2023 or 2024. But if we do, that’s another thing that will also slow the market down. It will decrease inflation and allow those interest rates to fall back down to where people can feel more comfortable about buying a home,” Jolly said.