Whether you are looking to buy a home or become a realtor in Nashville, you are probably wondering what the real estate market looks like. It’s good to know beforehand how exactly the Nashville market is holding up, especially if you have a real estate stake in the city. As we all know, Nashville is a thriving city full of old southern sensibilities that also welcome modern adaptations. Since the city is known for playing a big part in the music industry as well as becoming a hub for emerging foodie trends, it’s safe to say the city will consistently be growing. With that said, this is certainly a great benefit for real estate because this means more people are moving to the area. And if you are a real estate agent, this could be financially lucrative for you. So, let’s take a look at how the Nashville real estate is performing so you have a more clear picture of what you are getting yourself into.
In the last 10 years, Nashville has had a housing boom because of its willingness to grow with the times and attract more people. As of 2017, the demand for homes and rising prices have made it a booming seller’s market. However, by 2018, the market saw a steady increase which made it a gradual change from a seller’s to a buyer’s market. This is due to property appreciation rates, which have always been high, are now starting to increase at slower rates than before. With that said, properties are now becoming more affordable for buyers. This is good news because those who were previously scared aware of the appreciation rates are now once interested again and are either buying or seriously consider it. This is also good for new home buyers as the usually high appreciation rates would have scared them off but are now drawing them in.
As of 2020, Nashville homes are at a median price of around $266,000 and have increased at a rate of 7% since 2018. The median list price per square footage is around $193, which is higher than surrounding areas such as Murfreesboro, and Franklin-Metro, who typically average at about $163 per square footage. With that said, the surrounding areas of Nashville do have cheaper prices and that might influence some buyers to look outside of Nashville to find a cheaper home. However, the rental rates in Nashville versus the surrounding area are about $1,675 and $1,640, respectively, so it is safe to say that renting in Nashville seems to be more appealing to those who are not dedicated to purchasing a home yet.
The Promising Trends
Although prices on homes in Nashville have seen a steady decline, that’s not to say that this will scare away potential buyers. In fact, it’s quite the opposite. Condos in Nashville are thriving as more people consider buying these types of homes instead. As of 2019, there are over 400 condo properties that were for sale and even though they average at around the $325,000 price point, people are still buying them. This definitely helps the real estate market because it can diversify your listing and you don’t have to feel beholden to one type of rental property. Use this to your advantage when you come across potential clients who feel condos are more suited for their needs. You can also rely on this buying trend for when standard residential houses are experiencing a dry spell in the market.
Invest in the Nashville Real Estate Market Now
Now that you are aware of past and present performing trends in the Nashville market, you can act now in order to sell or buy in the market. Since Nashville is such a rapidly growing city, even with its gradual price spikes, the market will always perform well to your benefit. So, act now, and see how you can benefit from Nashville’s real estate market, especially with your knowledge of how the market is performing.