NASHVILLE, Tenn. (WKRN) — Nashville is predicted to be the fifth hottest real estate market of 2023, according to a new study by Zillow.

Their rankings are based on an analysis of “home value growth, recent housing market velocity, projected changes in the labor market, home construction activity and number of homeowner households.”

Zillow said the top ten markets have all strong home value growth, a solid economy, relatively fast-moving inventory, and a large pool of likely buyers.

(Source: Zillow)

While the nationwide real estate market is expected to cool this year, Greater Nashville Realtors said Music City is in a position to see growth over 2023.

“Nashville has maybe the most dynamic economic engine in the country and it has gotten even more dynamic over the course of the last ten years,” said Nathan Weinberg, vice president of the board of directors for Greater Nashville Realtors. “Regardless of economic circumstance, Nashville continues to just drive forward.”

In 2022, Greater Nashville Realtors found listing prices continued to rise, even for houses sitting longer on the market. Weinberg said that trend could continue in the new year.

Weinberg said Nashville’s housing supply has increased over recent months, but it’s still not enough to keep up with the demand.

He said right now they’re seeing a slow but steady decline in interest rates that’s fueling demand and resulting price hikes.

“Buyers that are saying, ‘I want to wait to see what happens with interest rates,’ I really encourage you to start your searches now,” Weinberg said. “Interest rates might continue to fall, but very slowly, but supply is also going to fall, and so if you want to have the most options, the most bang for your buck, now’s the time to get out with your realtor and look for something.”