NASHVILLE, Tenn. (WKRN) — Existing homes in the greater Nashville area are not only selling well, they’re selling well above asking price. Their prices are outpacing the price of new construction homes.
Steve Jolly, the president of Greater Nashville Realtors said three or four years ago, he predicted Nashville would be a strong market but didn’t expect it to become what it is today.
Data from Greater Nashville Realtors shows the annual median price of a new construction home in greater Nashville grew 11.64% from 2020 to 2021.
During that same time, existing home prices grew 20.63%.
Jolly said there are several reasons existing home prices are outpacing new construction prices. One of those reasons being with new construction homes, prices tend to be fixed. With existing homes, there’s a bit more give and take with the price between buyers and sellers.
“With newer neighborhoods are often like I said earlier, farther away from the city court. Sometimes they’re more generic than a established neighborhood can be as far as the type of homes that are being built and the way the homes look, and the landscaping between the homes and those types of things,” Jolly said. “So you have some buyers just prefer to be in an established neighborhood or they prefer to live in a home maybe that’s a mid-century modern home, or maybe a more historic bungalow type of house.”
Jolly predicts this trend isn’t going to slow down in 2022.
“This is the strongest market,” he said. “If you look at records going back to 1979 by the St. Louis Federal Reserve, they show the Nashville home prices and appreciation. It’s been pretty steady, a pretty steady curve. But when you get to the end of the curve, it almost goes straight up. So this is the strongest market we’ve had since 1979.”
If you’re looking to buy an existing home, he said the competition is huge. So, you’ll need to be in a position where you can move quickly.
For first time home buyers, Jolly said new construction may be the better move for you.
Jolly said you’re likely to find less competition and you can lock in a price early. However, be prepared to wait while it’s being built.