NASHVILLE, Tenn. (WKRN) — Just when we thought the housing market couldn’t get any more complicated, first-quarter home sales in 2022 show signs of rising demand and shrinking supply.
It’s a one-two punch for hopeful buyers looking to get in the market with the purchase of a single-family home. Due to high prices, Steve Jolly, President of Greater Nashville Realtors says they’re turning to condominiums instead.
“I think folks that waited a year or folks starting to look now are starting to realize that maybe a single-family home is out of their reach or out of their budget right now,” Jolly said.
Data for the first quarter of 2022 showed 9,378 closings, nearly a .5% increase from the 9,338 closings during the first quarter of 2021.
Looking at new figures provided by Greater Nashville Realtors, Jolly says he’s really noticed the increase in condo sales, and with it, a drop in inventory. From 2021 to 2022, the inventory of condos dropped by nearly 400.
“I think the reason why is because of the affordability. What you could buy a home for last year is what you’re having to pay for a condo for this year,” he said.
However, inventory dropped in every sector year-over-year.
The median price for a residential single-family home was $461,620 and for a condominium, it was $319,690. This compares with last year’s median residential and condominium prices of $367,090 and $259,900 respectively.
“If you wait another year, what’s going to happen is you’re going to fall further behind and that 600k home is going to be 700k home,” Jolly said.
To make matters worse, new listings hitting the market are down 20% over the last year. Quite simply, not enough people are selling their existing homes.
“They’re afraid they won’t find the home they want they’re afraid that the home they really want they can’t afford now, especially with interest rates on the rise,” Jolly said, adding that his best advice is to change your expectations and go from there. “If it were me personally, I would not sit on the sidelines in this market just because the appreciation is so strong.”