For potential buyers who have been waiting on the sidelines because of higher interest rates or those just within reach of homeownership, now is the time to start preparing. The latest data shows that 75 percent of metro markets saw home prices rise in the second quarter of 2025. In Nashville, the median price for a single-family home in July was five percent higher than the same month last year.
While prices are growing more slowly than in past years, values are still climbing. Nashville’s strong job market and pent-up housing demand continue to keep competition high.
At the same time, the income needed to afford a home has increased significantly. Nationwide, buyers now need to earn $114,000 per year to purchase a median-priced home — a 70 percent jump from the $67,000 required in 2019. In Nashville, that figure is even higher, with buyers needing an annual income of $145,244 to afford a median-priced home valued at $549,450, according to Realtor.com.
With those figures in mind, even small changes in mortgage rates can make a noticeable difference in your monthly payment. Rates have declined for the second week in a row, with the average 30-year fixed-rate mortgage now at 6.66 percent. The week’s rates were the lowest we’ve seen in 2025 and the past 10 months overall.
If you are in a financial position to buy, it is wise to act while rates are trending down. Start by getting preapproved with a lender so you know exactly what you can afford. Then, partner with a trusted Realtor who can help you navigate the market, negotiate the best deal, and put you on the path to building equity for the future.
Collyn Wainwright 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 Collyn at 615-383-6964 or collyn@collyn.com.
