Heading into 2026, the Greater Nashville housing market was beginning to show renewed momentum following an uptick in mortgage applications during the fourth quarter of 2025. That increase signaled growing interest from buyers who had been waiting on the sidelines, encouraged by improving affordability conditions and the potential for lower interest rates.
The latest home sales figures, however, reflect a more nuanced start to the year. Closings across the Greater Nashville region declined four percent overall. At the same time, falling interest rates early in the year sparked another surge in mortgage applications, a trend that is clearly visible in Davidson County. Homes under contract there rose twelve percent, pointing to strong buyer demand entering January.
That momentum was temporarily disrupted in the final week of the month. Widespread damage and prolonged power outages caused by Winter Storm Fern delayed closings across the region, impacting transactions that were already under contract and pushing some activity into February.
Interest rates remain a key factor for many consumers weighing their next move. For buyers who have been waiting for the right moment, a drop below six percent could provide the confidence needed to move forward as the spring market approaches. Sellers, too, tend to benefit when rates stabilize or ease, as improved affordability brings more qualified buyers into the market.
Looking more closely at pricing trends, home values remained relatively stable. The median sales price for single-family homes in January was $485,598, a one percent decrease from a year earlier, while condominium prices rose three percent. This kind of measured price movement is a positive signal for buyers, suggesting a shift toward a more balanced market.
Inventory levels also increased nine percent year over year, though supply remains well below what is needed both locally and nationwide. As the spring market nears, buyers and sellers alike should watch interest rates closely. Stable or slightly lower rates could unlock pent-up demand, while sellers will benefit from thoughtful pricing strategies as days on market edge higher and buyers gain more options.
Jack Gaughan 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 Jack at 615-478-0970 or jack.gaughan@gmailcom.
