Navigating Nashville's Housing Market: Rising Prices, Buy Downs, and Falling Rents

When you think of Nashville, you might picture its iconic country music scene, bustling nightlife, or that hot chicken you can't stop craving. But there's another buzz in town: the real estate market. From soaring house prices to the intriguing strategy of "buy downs," here's what you need to know.

A Peak at the Numbers

According to Justin Floyd, a well-respected guide to Nashville real estate, the housing prices in the Music City have witnessed a significant 7% rise from the previous year. The median sales price now sits comfortably at $599,900, making some homebuyers' jaws drop and others wonder how to navigate this ever-evolving market.

The Buzz About "Buy Downs"

If the rising interest rates have made you break a sweat, here's something to consider: buy downs. In simple terms, a buy down is when a seller gives the buyer a credit to offset some of their mortgage costs. Instead of reducing the home's price, this strategy lowers the monthly payments for the buyer, proving beneficial in a high-interest environment.

For instance, on a $300,000 home, asking the seller for a $10,000 credit to buy down your interest rate could save you a substantial amount each month. As Justin Floyd illustrated, this strategy could save you $248 a month compared to a mere $78 saving if the home price was reduced by the same amount.

Why are Nashville Rents on the Decline?

In a twist, while house prices are skyrocketing, Nashville's rents are witnessing a dip. This decrease is attributed to the highest level of vacancy in 20 years. Developers have been busy, with 12,000 new apartment units built from July 2022 and an additional 37,000 under construction or in the pipeline. With so many options, renters have leverage, and many apartment complexes are now offering perks like free rent to lure them in.

In Conclusion

The Nashville housing market is a rollercoaster of ups and downs, with house prices on the rise and rents surprisingly dipping. If you're eyeing Nashville for your next move or investment, strategies like buy downs might just be your ticket to a smarter investment. And remember, every market fluctuation is an opportunity in disguise.

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Did the Fed's Interest Rate Hike Impact Nashville's Housing Market? A One-Year Retrospective

Hey there, I'm Justin Floyd, your go-to guide for all things related to Nashville real estate. A year ago, the Federal Reserve jacked up interest rates with the goal of slowing down the runaway housing market. So, did it work here in Nashville? That's what we're here to find out today.

A Snapshot of Nashville's Housing Market

First off, let's talk numbers. A year out, and the median sales price for a single-family home in Nashville is $560,000, up just 1.8% from $550,000 last year. If you ask me, that's not much of a bump, which means that home prices are more or less holding steady.

The Sales Volume and Days on Market

Here's where things get interesting. The total number of single-family home sales has dropped ever so slightly—by 1.9%—compared to last year. Now, regarding the time houses are spending on the market: that’s where we see some noticeable change. Last year, homes were getting scooped up in just 12 days, whereas this year it's taking about 21 days.

Inventory: The Big Number

We can't talk about the housing market without mentioning inventory, or lack thereof. New listings have dropped by a staggering 20%. People seem wary of leaving their comfy 3% interest rate homes for new abodes with rates as high as 7%. So, if you're seeing fewer options out there, this is why.

New Construction: Filling the Gap

With fewer homeowners willing to sell, new construction has filled in the void. As it stands, one in every three listings in Nashville is a new construction. It's not because builders are overzealous; it's because current homeowners just don't want to sell.

The Rise of the Condo Market

Something else I've noticed is the growing interest in condos, and for a good reason. With mortgage rates up and home prices staying more or less stable, the monthly payment you’re looking at is, well, not so comfortable. The median sales price for a condo right now is $392,000, up 7% from last year. So if you're considering options, condos might be worth a look.

Future Projections: What's Ahead?

I can't help but think we’re in the calm before the storm. If interest rates drop to around 5%, we’re likely to see a flurry of activity in the housing market. It's like there's this pent-up demand just waiting for the right moment to unleash.

Wrapping it Up

So, did the Fed's interest rate hike work? Well, if the goal was to keep home prices from skyrocketing, then yes, it worked to some extent. But the overall picture is more complex, with lower inventory and people hesitating to make moves.

If you've got any questions, feel free to drop them below or shoot me an email at justin@justinfloydhomes.com. And if you find my updates helpful, hit that subscribe button on YoutTube. My goal is to reach 250 followers by year-end, and I’d love your support!

The Nashville Housing Market: Insights, Trends, and What $580k Can Get You

In recent times, the Nashville housing market has been the subject of much discussion. It's an ever-evolving landscape with numbers and trends changing month-to-month. Join us as we dive deep into the latest statistics and even venture out to explore what a median-priced home in the city looks like.

Nashville's Housing Market By The Numbers

Latest figures from the Greater Nashville Realtors have thrown up some interesting insights:

• Median Sales Price: The median sales price for single-family homes in July was $580,000. This is a notable 5.5% increase from the same month the previous year.

• Sales Volume: This July saw a 13% decrease in the number of single-family homes sold compared to the previous July.

• Inventory: The number of listings was down by 7% compared to the previous year.

A Close Look at A Median-Priced Home in Nashville

Just to give you an idea, we recently came across a house priced at $560,000 in Englewood, East Nashville. This three-bedroom, two-bathroom property, representative of the median home price, boasts genuine hardwood floors and a renovated kitchen. One of its standout features is a finished basement – a rarity in East Nashville. With separate entry and an additional bathroom, it's perfectly primed for Airbnb, given the right codes and permissions.

The Current Buying Sentiment

The current market situation is unique. A report indicated that 82% of consumers feel it's not an ideal time to buy a house. The significant players in the housing market right now are either those compelled to move or those who can bear the expense. The interest rates currently stand at 7%, which doesn’t sit well with consumers. But remember, reduced interest rates can trigger a buying frenzy.

Key Market Metrics & Nashville's Growth

According to the Nashville Chamber of Commerce, among the 52 largest US metros, Nashville ranks:

• 4th in job growth since April 2020, adding 110,000 jobs.

• Top 10 for GDP growth, population growth, and per capita income.

• In 2022 alone, Nashville welcomed an average of 98 new residents daily, with a net increase of about 35,000 people in its population.

In Conclusion

The Nashville housing market is bustling with opportunities and challenges alike. If you're thinking of relocating to Nashville or already live here and are considering buying or selling a property, I'm here to help. Drop your queries below or reach out to me at justin@justinfloydhomes.com. Stay tuned for more updates, and until then, take care!

Note: Always remember, figures and trends in the real estate market can shift rapidly. It's essential to stay updated and make decisions based on the most recent and reliable data.

Nashville Single-Family Housing Market Analysis: Insights for July 2023

Are you interested in understanding the recent trends and numbers of the Nashville single-family housing market? Welcome aboard! Our real estate expert, Justin Floyd, is here to provide a comprehensive look into the current market dynamics, offering insights based on June's surprising numbers and comparing them to last year's so-called 'unicorn market'.

Dive Into the Nashville Real Estate Market

In this deep dive, we're exclusively focusing on the single-family housing market in Nashville, not including the surrounding counties. All data is fresh off the plate, having been recently released by the Nashville Association of Realtors.

As we unpack the Nashville real estate market, here are some of the key metrics we'll explore:

Median Sales Price

The median sales price for a single-family home in Nashville for June stood at $566,000, showing a decrease of 7% year over year. This is significantly lower compared to our average median sales price of $589,000 for all of 2023.

Sales Numbers

Sales numbers have also taken a hit, with Nashville seeing a decrease of 24%. The market saw 540 closes in June compared to 714 in the same month last year.

Inventory

As far as inventory goes, headlines have been flying left, right, and center. The reality? Nashville's inventory year over year is down by 3%. This confirms that we're still grappling with a tight supply of houses.

Days on Market

The average time a single-family home in Nashville spent on the market has also risen from seven days last year to twenty days this year.

What’s Causing These Changes?

High interest rates have been a major deterrent for buyers, and the current 7% rate has created some stagnation. On top of that, many current homeowners, enjoying mortgages with interest rates of 3% or less, have little incentive to move. This compounds the inventory issue.

The Silver Lining

But it's not all gloom and doom! Many homeowners are sitting on a wealth of equity due to the significant home price increases in the past few years. This equity is motivating them to make a move—whether to a larger home, a different city, or to downsize.

Additionally, Nashville home builders are pulling out all the stops, issuing a record number of housing permits. This uptick in construction could offer a much-needed boost to our inventory.

More Than Just a Market Analysis

Beyond market analysis, Justin Floyd brings you a slice of local Nashville life. In this edition, he introduces you to the latest gem on the culinary scene - Xiao Bao in East Nashville's Cleveland Park. A must-visit for all food lovers!

Stay tuned for more updates on Nashville's single-family housing market and local happenings. Feel free to reach out to Justin Floyd with any real estate queries, and don't forget to subscribe for weekly insights!

Keywords: Nashville single-family housing market, Nashville real estate, Nashville Realtors Association, median sales price, real estate market dynamics, Justin Floyd, housing market analysis, Xiao Bao, Nashville housing permits, Nashville home builders

Meta description: Get the latest insights on the Nashville single-family housing market from expert Justin Floyd. Uncover June's surprising numbers, and discover the best new restaurant in town, Xiao Bao.

Your 2023 Guide to Nashville's Real Estate: An Insight into the Six Hottest Neighborhoods

As we cross the halfway mark of 2023, it's time to take a closer look at the Nashville real estate scene. Today, we're focusing on six of the most popular neighborhoods, providing a comprehensive overview of current market trends, prices, and inventories. Whether you’re already a resident, planning to relocate, or simply interested in real estate, this guide will offer valuable insights.

1. 12 South: A Premier Residential Neighborhood

Located in the heart of Nashville, 12 South is known for its tree-lined streets, charming bungalows, luxury new builds, and, of course, a steady stream of tourists. As of May 2023, the median sales price for a single-family home was $1.324 million. There were 19 homes for sale in May, marking a significant 137% increase from the previous year.

2. Hillsboro-Belmont: The Charm of History and Walkability

Adjacent to 12 South is the beautiful neighborhood of Hillsboro-Belmont. Nestled close to Vanderbilt and Belmont Universities, this area is loved for its walkability and historic beauties. The median sales price rose to $1.214 million in May, up from $841,000 in January. However, the number of homes for sale decreased slightly, with 13 listings compared to 17 in January.

3. Wedgewood Houston: The Sports Lover's Paradise

Wedgewood Houston, home to Geodis Park and Nashville's Major League Soccer team, is another neighborhood worth considering. The median sales price in May was $780K, marking a 9% year-over-year increase. The number of homes for sale doubled from January, with 20 properties on the market in May.

4. Sylvan Park: The Charm of West Nashville

Sylvan Park, a sought-after neighborhood with a rich history, reported a median sales price of just over 1 million dollars in May. Inventory was low with just 18 listings - the lowest in the last three years.

5. The Nations: Trendy and Growing

The Nations is a rapidly growing neighborhood with a trendy vibe. With its new builds and increasing popularity, the median sales price hit right at $700K for a single-family home, marking a 17% year-over-year increase. As of May, there were 48 homes for sale.

6. East Nashville: The Big Three

In East Nashville, we're combining Lockeland Springs, Inglewood, and Cleveland Park into one. These neighborhoods, each with its unique vibe, reported a median sales price of $605K in May, a slight increase from January and up 13% year-over-year.

Get in Touch

Whether you're thinking about buying or selling a property in Nashville, having a resource you can rely on is crucial. Feel free to reach out to me at justin@justinfloydhomes.com - I'd be more than happy to assist you in navigating the Nashville real estate market.

We hope this blog post has provided valuable insights into the current Nashville real estate market. If you prefer a more visual guide, check out our comprehensive YouTube video covering the same topic.

Remember, real estate trends are dynamic and can change rapidly. Stay updated by subscribing to our YouTube channel, where we frequently post about life and real estate in Nashville.

*keywords: Nashville real estate, Nashville neighborhoods, buying a home in Nashville, selling a home in Nashville, Nashville homes for sale, Nashville housing market, 12 South Nashville, Hillsboro-Belmont, Wedgewood Houston, Sylvan Park, The Nations, East Nashville.

A Deep Dive into Nashville's Housing Market - June 2023 Update

Welcome to the latest real estate news from the heart of the music city! I'm Justin Floyd, your go-to guide for all things real estate in Nashville. Whether you're a Nashville native, a new arrival, or simply contemplating a move, I'm here to keep you in the loop about the ever-evolving Nashville real estate scene.

The State of Inventory and Prices

Exciting news: housing inventory in Nashville is up! In May 2023, we saw an encouraging increase of about 10% in available homes compared to the same time last year. However, with inventory, prices have risen too. The median sales price has seen a significant surge of 9%, taking it up to $633,000. And just to clarify, this data is exclusively for Nashville, excluding the 13 surrounding counties, and pertains to single-family homes.

What Does This Mean for Buyers?

The inventory supply - the amount of time it would take to sell out of all houses currently on the market - stands at 3.8 months. This marks a substantial improvement from last year, making the current market more favorable for buyers. Further good news for buyers comes in the form of the average days on market, which has risen from eight to 25. Despite these positive changes, Nashville's overall home sales are down by 20%. A total of approximately 800 homes were sold in May, compared to 1000 during the same period last year.

The Impact of Mortgage Rates

While inventory availability has improved, the number of homes for sale is still relatively low, and high mortgage rates are further discouraging potential buyers. As of now, mortgage rates hover around the 7% mark. A dip in these rates would likely coax hesitant buyers off the sidelines and into the housing market.

Nashville’s Standing in the Housing Market

In other news, a recent article from Bankrate.com ranked Nashville as the second hottest housing market in the U.S, only behind Charlotte, North Carolina, and ahead of cities like Tampa, Dallas, and Orlando. This shows the undeniable allure of the Southeast, with its steady home values and growing job opportunities. Bankrate.com's rankings were based on home values, employment levels, job growth, population trends, the number of homes listed for sale, and typical selling times.

Update on River North and Oracle's Campus

Finally, let's talk about River North and Oracle's campus. Phase one of River North, featuring several mixed-use buildings, is well underway. Although this phase doesn't include Oracle's campus, the progress made suggests positive future developments for the area.

To conclude, while Nashville's real estate market has slowed compared to last year, it remains vibrant, and the future seems promising. Stay tuned for more updates and feel free to reach out to me at justinfloydhome.com with any questions.

Keywords: Nashville Real Estate, Housing Market, May 2023, Inventory, Median Sales Price, Single-family homes, Mortgage Rates, Bankrate.com, Hottest Housing Markets, River North, Oracle's Campus.

Nashville Housing Market Update | August

Let's look at the numbers, the latest numbers for Nashville and middle Tennessee.Sales for July were down quite a bit, 19%. We will look at that number in just a minute, but let's go through the key figures here.

Median sales price in the middle of Tennessee for a single family home for July, $490,000. A year ago, $415,000. So, you can see the price rise over 12 months there. Days on market is at 28. Just a few months ago, we were talking about Nashville leading the country in 12, 13, 14 days on market.

What does all of this mean? So, comparing the number to 2021, of course, it's down. Interest rates have gone up. Some buyers have backed out, and home prices have stayed steady for the past few months.

And last year was a white piping hot housing market, so the current numbers look more like they might have looked back in 2019. We could still use more inventory to really look a lot more similar to 2019.

It's still a seller's market, and we expect prices to probably increase once the mortgage rates determine what they're going to do. Is it going to be high? Is it going to be low? Is it going to be in the middle? Whatever it is, they'll calm down, and buyers will come back out. So, this is more of what a normal market looks like.

An article from Redfin points to that being more of a normal market. The multiple offers on a listing, that was the case for 47% of the houses on the market in Nashville in June. 47%'s a lot, but that was down 21% from the previous month when it was at 68%.

So, Nashville's not alone either. A lot of Sun Belt markets were way down for multiple offer situations, bidding wars, Austin, Dallas, Tampa, Miami, Las Vegas, those were all hot markets during the last two years, and their bidding war numbers all dropped double digits.

So, what's that mean? We're getting to, again, some normalcy. This gives buyers time to look at houses. You can go look at a few houses on the weekend. You don't have to go Thursday at 8:30 in the morning to see that house that's going to get 18 offers. In this market, the most popular listings continue to get multiple offers. But overall their buyers have an opportunity to think things over more than 24 hours, which is nice.

-Justin

Nashville Housing Market Update | July 2022

The last few months, you've heard economists and other people in the know predict two things for the national housing market. One, that the number of sales would go down. Two, that the average sales price would go up. And that is happening right now nationally and in Nashville and Middle Tennessee. Let's look at the latest numbers. The last complete month of sales, June, compared to the same time last year, down 8%. Why are sales down 8%? You might have guessed, it's the mortgage loan interest rates. They're up, so buyers are bowing out.

What's that do to things like days on market? Well, those are going up. They're at 24 days on market on average for listings. If you remember a few months ago, we were talking about Nashville leading the country in the fewest days on market around 12 and 13. Number of listings, that's gone way up, 22%. Put 22% in bold and circle it because that is the second largest year-over-year increase in number of listings in the country amongst the 53 largest metros surveyed. Nashville just got a lot more inventory, that is great for buyers.

Sales prices, are they doing what people predicted? Sure. The median sales price in Middle Tennessee for a single family home, $495,000. The same time last year, $415,000. Is this doom and gloom? No, it doesn't seem like it. If you compare it to the craziness of the last 18 months, maybe it seems like that, but really there are pre-2020 mortgage rates. It's pre-2020 inventory. If you've been trying to buy and you've just been frustrated, then now's your time. It's time. There are houses sitting on the market that are good houses. Some are even doing price decreases.

Thanks for reading. Talk to you soon.