The Summer season officially kicked off on Thursday, and here in Middle Tennessee, we’re certainly feeling the heat. Spring traditionally marks the peak of the housing market, and this year was no exception. The Spring months set a strong foundation for what lies ahead, with solid activity in terms of property listings and sales. Buyers and sellers were active and with almost half of 2024 in the rearview, the Greater Nashville region is poised to move into Summer with the confidence of stable market conditions.
In March and April, the Greater Nashville area saw an uptick in property closings. This trend was driven by a combination of factors, including the area's continued population growth and a steady increase in the inventory of homes for sale. The rise in inventory provided buyers with more options, contributing to a more balanced and healthy market environment.
As we transition into the summer months, several key factors will shape the housing market. Traditionally, summer is a time when families prefer to move, aiming to settle before the new school year begins. This dynamic often leads to sustained demand for housing, keeping the market active. However, there are factors that could temper a robust selling season. Industry professionals and consumers were expecting the Fed would make at least one rate drop going into the summer – an expectation that has likely been delayed until the fourth quarter of this year.
Interest rates and housing prices continue to be the driving factors in our market. Some buyers are still priced out at current rates, while others inaccurately cling to the hope that prices will decline. While rates will come down (the Fed now predicts up to four rate reductions in 2025), it is unlikely that home prices will follow suit. Instead, the best time to buy a home in Greater Nashville is now. Over the past decade, home values have continued to rise, and with interest rates as high as 8% recently, home prices remained steady. As rates begin to fall, more competition will enter the market, driving prices incrementally higher. Consumers will always be able to refinance at a lower rate in the future, but the cost of the home will likely never be less than it is right now in our area.
In 2023, there was an estimated population increase of 83 people per day in our ten-county area – a statistic that has been staggeringly consistent for the past five years. Nashville is a destination city not only for tourists but for businesses, investors, and families alike.
