NASHVILLE, Tenn. (WKRN) — For the first time in three years, U.S. home prices fell between June and July, and it was the most significant drop since 2011.
However, the opposite happened in Nashville.
According to a study by Black Knight, a mortgage software, data, and analytics firm, house prices fell across the U.S. by .77% between June and July, a time when they typically rise.
The decline was the single largest drop in prices in a month-long period since Jan. 2011, and the second-worst July performance dating back to 1991, according to the report.
Steve Jolly, president of the Greater Nashville Realtors Association, told News 2 the drop in prices is miniscule, and it only applies to certain parts of the U.S.
Nashville saw an increase in home prices during June and July. According to realtor.com, the median listing price in June was $475,000, and it rose to $485,000 in July.
Jolly says the main reason prices aren’t dropping in Nashville is due to supply and demand.
“It’s a hot market. People want to move here, people are moving here, and we simply don’t have enough homes for the number of people that want to live in Middle Tennessee,” Jolly said.
The problems with lack of inventory stem from after the Great Recession, when home building slowed significantly.
“We didn’t build as many homes as we should have, and we went for five years where we hardly built any homes, and then in that 10-year period of time we didn’t build anywhere close to the number of homes we were building prior to the recession, so not only were we short, but we’ve been getting shorter and shorter every year,” Jolly said.
Jolly advised future home buyers not to let the fluctuating market determine when they purchase a house, but rather, the right time for them.
“A good time to buy a house is when you’re ready for it,” Jolly said. “When you’re ready to make that move, when you’re physically ready, and when you’re emotionally and financially ready.”