NASHVILLE, Tenn. (WKRN) – A new study from Zillow shows Nashville’s housing market gained $52 billion in 2021, now worth $169 billion more than it was a decade ago.
Homes are now selling faster than ever and for more money as strong demand meets weak supply.
“This January, personally, I’ve had more business than ever. It’s nonstop,” said Amanda Peterson, a realtor with the Ashton Real Estate Group of RE/MAX. “People are trying to buy houses, people are trying to sell houses and we’ve got tons and tons of people moving to the city or the suburbs close by.”
Our popularity and opportunity comes at a price.
A new report from Florida Atlantic University’s (FAU) College of Business identifies Nashville as one of the most overvalued housing markets in the country.
Based on calculations, the 40 percent premium that home buyers are paying on the average home in Nashville ranks as the 18th highest among the country’s 100 largest metros.
Right now, Zillow says the average home in our area is selling for about $394,000, well above the average predicted price that buyers should be paying, according to FAU, at $281,000.
It shows Nashville buyers are overpaying by almost $113,000.
Peterson says we need to shift our thinking.
“I have not had anyone surprised that the pricing is higher. They’re getting better jobs that provide more income, so they’re not surprised at all and not fighting back on that. They’re just excited to find a place in an area that is coming up so quickly,” Peterson said. “There’s a lot more career opportunities here, new developments, new factories, new workplaces. There’s tons of people coming in.”
All of what’s happening now wasn’t happening 15 years ago. Peterson says she doesn’t think we’re overpriced; she thinks we simply caught up to everyone wanting to live here and that the pricing is completely fair.
Zillow says homes in Nashville are now worth a total of $267 billion, making Nashville the 29th most valuable out of the 50 largest U.S. metros.