As we transition from the winter chill to the warmth of spring, the real estate market in Greater Nashville is also showing promising signs of thawing soon. The momentum gained during and after the holidays has carried over into the new year, with existing home sales witnessing a 3.1% increase from December to January nationally, as reported by the National Association of Realtors. Here in our local market, we've kicked off the year on a strong note, with a notable 5% increase in closings compared to last January, accompanied by rising median sales prices for both single-family homes and condos.
While the housing inventory remains tight, there's a glimmer of hope as the inventory of unsold existing homes saw a 2% uptick from December to January, providing buyers with slightly more options. NAR's chief economist, Lawrence Yun, notes that while home sales are still lower than previous years, January's uptick signals a potential shift towards a more balanced supply and demand scenario.
For both buyers and sellers gearing up for the upcoming spring season, it's essential to position yourselves strategically in this evolving market landscape. Sellers should focus on pricing their homes appropriately. On the other hand, buyers are advised to start their search early and collaborate with a local Realtor who has a deep understanding of the market dynamics.
Prospective buyers should take proactive steps such as improving their credit and getting pre-approved for mortgages early on. With the market showing signs of a slightly increased pace, buyers in most cases still can expect to conduct thorough due diligence without feeling rushed into making hasty decisions. Unlike the frenzied pace of previous years, where buyers often found themselves competing with multiple offers and waiving inspections, the current market offers a bit more breathing room for thoughtful decision-making.
While mortgage rates remain elevated and housing inventory remains constrained, the gradual thawing of the market suggests a more balanced and favorable environment for both buyers and sellers as we move further into the spring season. As always, staying informed and working closely with an experienced Realtor will be key to navigating this evolving landscape successfully.
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
