As we head into the final quarter of 2024, the Greater Nashville housing market remains resilient. The latest data shows that September saw a slight uptick in the number of closings, with a 0.1% increase compared to last year. Median prices for single-family homes dipped slightly by 0.03% to $467,000, while condos experienced a healthy 3% increase, bringing the median condo price to $356,000.
Perhaps one of the most notable shifts is in inventory, which jumped by 24%, providing over four months of available supply. This increase is a breath of fresh air for buyers who’ve been competing in a tight market. With pending home sales up 5.5%, it's clear that demand remains strong.
The third quarter also brought positive news. Closings were up 0.5%, and median prices for homes rose by 2% to $484,000, while the median price for condos increased by 0.7%, settling at $351,275. These gains show steady growth in our market, even as the broader economy introduces new challenges.
Recently, the housing market has faced headwinds due to fluctuating mortgage rates. A surprisingly strong jobs report in September pushed rates higher, which could complicate things for buyers. The U.S. Bureau of Labor Statistics reported 254,000 new jobs, and wages increased by 4%, higher than anticipated. This economic growth nudged mortgage rates up, with the 30-year fixed rate jumping to 6.53%.
While higher rates may cool demand slightly, they also signal a robust economy that could benefit potential buyers in the long run. As Lawrence Yun, chief economist at the National Association of Realtors, pointed out, trying to time the market for the lowest mortgage rates can backfire. Rates remain below the levels we saw a year ago, and a predicted year-end dip to around 6.2% might provide some relief.
On a positive note, wage growth outpacing inflation is improving affordability for many buyers. Additionally, the construction industry is expanding, with residential construction employment now at 3.4 million. This growth could help address the housing supply deficit, providing more options for buyers as we head into 2025.
While higher rates may cause some buyers to hesitate, those with flexibility may find opportunities in the current market. Inventory is rising, and prices remain stable, making it a favorable time for those ready to make a move. Overall, Nashville’s housing market continues to reflect steady growth and resilience, providing optimism for both buyers and sellers.
