The Nashville real estate market holds promise for an exciting chapter in 2024. The challenges of 2023, marked by the highest interest rates seen in over two decades, seem to be easing into our rearview as we look forward with a blend of optimism and resilience, rooted in intriguing data insights.
With the end of year numbers released earlier this week by Greater Nashville REALTORS, 2023 witnessed a significant 16% decrease in the number of home sales compared to the preceding year. The surge in interest rates and overall economic uncertainty served as a formidable hurdle, influencing the decisions of both buyers and sellers. Remarkably, amidst these headwinds, the median home sale prices for both single-family homes and condos held steady, exhibiting the continued strength of our market.
Diving deeper into the data, we uncover a 4% decrease in home sales during the fourth quarter of 2023 compared to the same period in 2022. December 2023 mirrored this trend with a 4% decrease in the number of home sales compared to December 2022. These findings, combined with strong median home sale numbers from last year, point strongly that the worst of the market conditions are behind us.
Even more promising is the 16% increase in pending home sales for December 2023. This surge in pending sales underscores the enduring allure of Nashville's real estate market. It signifies that potential buyers remain enthusiastic about homeownership and are actively pursuing opportunities. Buyers currently have the most balanced market in many years. Interest rates may be higher, but there are seller concessions being made in many instances that make this an appealing time to purchase.
Not so long ago Buyers had to make purchasing decisions within hours and those decisions had to include how much over list price and appraised value AND whether or not to include an inspection contingency. For now, those days are behind us. But with the real promise of continued falling interest rates in the coming months, 2024 could be a year defined by pent up demand and a strong competitive real estate market.
Kevin Wilson is President of Greater Nashville Realtors. A Realtor is a member of the National Association of Realtors who subscribes to its strict code of ethics. You can reach Kevin at 615.390.5065 or kevin@ourhousenashville.com
