The Alex Helton Real Estate Show

May 2023 Nashville Market Update

Year over year numbers are officially red. As we discussed in previous episodes, the price drop we see on the board has already happened, as prices spiked last April/May and then fell later in the fall. Since then prices have been generally stable on a macro level. The price trend of the market is basically flat. While some price softening is possible, we're not seeing a dramatic downward trend or expecting a dramatic crash. The latest CPI report shows inflation is slowing, which we hope will keep mortgage interest rates from increasing and potentially even help them decrease. Number of transactions continue to come in well under last year's numbers with supply and demand decreasing at similar rates, which keeps the pricing from crashing. There still is not enough homes available for the buyers who want them. Even though there are fewer buyers, there are also fewer people choosing to move. The majority of transactions seem to be First Time Homebuyers and people moving in from out of state. Very few people seem to be moving within the city, instead opting to keep what is likely a low interest rate instead of taking on a new rate potentially 4% higher.

April 2023 Nashville Market Update

It's been an up and down 12 months in Nashville real estate. Prices are about where they were 12 months ago, but we've experienced a massive spike and then a similar drop since then. Over the next couple months, our YOY numbers will continue to look more and more grim as they are compared to the record breaking prices of last spring into last summer. It doesn't mean we are currently in a free fall though. We expect we've experienced the majority of the price settling, and our best guess is that over the next 12 months prices will remain relatively flat with the possibility of small increases or decreases. If mortgage rates fall back into the 5s, that will likely increase buyer demand in a relatively low inventory market. This added buyer competition could raise home prices again, though likely not as dramatically as we saw last year.

March 2023 Nashville Real Estate Market Update

Stats and Info from February 2023 in the Nashville Real Estate Market.

February 2023 Nashville Market Update

The stats from January indicate the most Buyer favorable environment we have seen in years. The median price in Davidson County saw its first meaning dip in recent memory. There has been some price fluctuation, but it's been within a predictable range and in line with typical seasonal trends. The January Median Price drop is more significant. Days on market are way up in all counties, and Sale to List Price is down. Summary: If you want a deal, now is the time to buy. We haven't seen a market so favorable to buyers is years, and we believe there is a limited window of time to take advantage of this. Other economic factors suggest that the Market could reignite this summer. Among other things, we may see Mortgage rates dip back into the 4s, and if that happens, we expect an increase in buyer demand that jerks the  system back into a Seller favorable environment, leading to the return of multiple offer situation, paying over list price, and potentially waiving contingencies. It may feel tempting to wait until the lower rate, but now is the time when buyers have leverage. That leverage can be used to negotiate the seller paying for you to have a lower rate. And, if rates do drop dramatically, some lenders are offering a reduced rate refinance, so you could buy now at a lower sale price, and refinance later to get a lower rate as well. If you would like to talk through what would make sense if your situation, or know someone who would benefit from some guidance, please let us know.

January 2023 Nashville Market Update

One stat in December tells the story. Fewer homes came on the market in Davidson County in December than in any single month over the last 15 years. The month of December typically has the fewer homes listed than other months of the year, but December 2022 was beyond the seasonally expected decrease. This lack of new inventory is the basic reason prices continue to be stable and are not in free fall. More homes sold in December than came on the market, so the market did not replace the inventory that it lost in closed sales. The tight inventory and overall lack of supply is keeping prices stable, even though we are seeing some conditions that are more favorable to buyers than in the past several years. Interest rates seem to be on a general downward trajectory as the inflation reports show signs of improvement.