NASHVILLE, Tenn. (WKRN) — We’re seeing big changes in our real estate market due to rising interest rates, with housing inventory reaching its highest level since late 2020.

Residential single family home inventory grew 47% over the last month, as the combination of higher prices and those skyrocketing interest rates limit what buyers can afford.

This comes as the median sales price hits another all-time high.

The median price for a residential single-family home was $498,785, and for a condominium, it was $340,506, according to Greater Nashville Realtors. This compares with last year’s median residential and condominium prices of $400,000 and $277,900 respectively.

Inventory at the end of May was 5,836, up from 4,308 in May 2021.

“It’s kind of like a container of toys at Christmas that are stuck at the port. They can’t get in and COVID really backed up stock,” Copeland said, adding that during his presidency in 2021, Greater Nashville saw some of its lowest tallies of new listings.

“Every single month, we saw low inventory, and so it was a backup and now people are seeing confidence in selling their homes and being able to buy and they’re starting to bring that inventory to the market. Then, we marry that with new construction. We’re seeing new construction permits across Davidson county and beyond go up so we’re seeing more construction and more building materials available.”

Buyers now have more homes to choose from than at any other time since November 2020.

“Is it enough? No, especially not on the affordable market level. Also, when we’re looking at homes below $500,000 right now in our entire region it’s very hard to find something at that price point, and that’s still expensive. So, if you’re trying to stay below $350,000 that’s really hard,” Copeland said.

As prices rise, closings drop with buyers forgoing this pricey market.

“We’ve got to focus and our builders, policies and infrastructure have to focus on being more friendly to affordable housing, especially below that $350,000 price point,” Copeland said, adding that we shouldn’t look for prices or interest rates to fall anytime soon.

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“Right now, we have such a backup of buyers because you saw that closings were down, and you said why were they down from last year, well because many of those buyers took a pause we saw a record number of buyers say ‘I’m just not going to buy a house right now.’ Now, those buyers are going to come back into the marketplace,” Copeland said.