The Reverie Review
Q3 2024 | Market Report
Q3 2024 | Market Report
DISCLAIMER: SOURCE: REALTRACS BASED ON DATA SUPPLIED BY THE GREATER NASHVILLE ASSOCIATION OF REALTORS MULTIPLE LISTING SERVICE. THE INFORMATION, DATA, AND FIGURES CONTAINED HEREIN ARE PROVIDED FOR GENERAL INFORMATIONAL PURPOSES ONLY. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE THE ACCURACY, COMPLETENESS, AND RELIABILITY OF THE INFORMATION, CORCORAN REVERIE MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE ACCURACY, ADEQUACY, VALIDITY, RELIABILITY, AVAILABILITY, OR COMPLETENESS OF ANY INFORMATION PROVIDED.
Now more than ever, Nashville is on the radar. Named one of the “Best Places to Travel” by Travel + Leisure, one of the “Top Places to Go” by The New York Times and one of the “Destinations You Don’t Want to Miss Out On” by Conde Nast Traveler, Nashville offers everything from an electrifying multigenre music scene, award-winning cuisine, historic homes, world-class art, a myriad of attractions, unique shopping, college and professional sports, and more.
A city with a backbeat and a twang that never forgets its roots. As the “Country Music Capital of the World,” Nashville is world-renowned for its music and honky-tonks. Although music influences virtually every aspect of modern life in the cosmopolitan city, Nashville has a diverse and storied history.
Nashville is widely known as Music City–and for good reason. But music’s not the only thing that makes the city famous. Whether you’re a foodie, a history buff, or simply looking for a fun vacation destination, Nashville offers exciting and unique experiences for all ages and interests. If you appreciate art, Nashville’s got something for you, too. Whether it’s a walking tour of the city’s many murals or a day spent at a world-renowned museum, there’s plenty of beauty to take in around Music City. Nashville’s got sports fans covered, too. Whether you’re a fan of football, hockey, racing, or baseball, there’s a team for you to root for in Music City.
• Closed Sales Decline and Longer Days on Market - Closed sales in Q3 2024 declined by 11.8% year-over-year and 19.4% quarter-over-quarter, with properties taking longer to sell—average days on market increased to 27, up 28.6% year-over-year. This indicates a cooling market where buyers are taking more time to make decisions.
• Contracts Signed Show Resilience Amid Slowdown - Contracts signed saw a modest yearover-year increase of 2.7%, suggesting that while overall market activity has slowed, there remains steady buyer interest. However, contracts signed dropped 16.9% compared to Q2 2024, reflecting a shift in momentum.
• Market Stabilization from Pandemic Highs - Compared to the peak demand during pandemic years, both closed sales and contracts signed show a stabilizing trend. Despite current declines, the Nashville market is adjusting to post-pandemic conditions with a more balanced pace of buyer engagement.
• Stable Year-Over-Year Pricing Amid Market Shifts - Median price in Q3 2024 was $580,817, showing only a slight year-over-year increase of 0.2%, while the average price grew 0.6% to $814,240. This stability in pricing suggests that the market is holding firm, despite broader economic pressures and higher borrowing costs.
• Quarterly Decline in Home Prices - Both median and average prices experienced a decline from Q2 2024, with median prices dropping by 4.5% and average prices by 4.0%. This quarterly drop may indicate a cooling in buyer demand, likely influenced by the impact of elevated interest rates throughout most of the quarter.
• Increased Inventory with Slower Price Growth - Active inventory grew significantly, with a 20.6% year-over-year increase, while median and average prices remained relatively stable. This suggests a market where supply is expanding faster than demand, contributing to slower price growth and potentially offering more opportunities for buyers.
• Luxury Market Dynamics - The $3M+ segment saw a notable increase in active inventory (+26%), and the luxury price segment saw a minor increase in average price compared to last year. This points to more high-end properties entering the market, even as demand appears to soften, reflecting a trend towards increased choice for luxury buyers amidst shifting market conditions.
• Shift Toward Higher Price Segments - Despite inflationary pressures, the luxury segment has seen a significant increase in inventory and a slight rise in average pricing. This suggests that high-net-worth buyers, who may be less affected by inflation, are still active in the market, creating opportunities in the luxury sector even as mid-range buyers face greater challenges due to inflation’s impact on overall affordability.
UNDER $500K
$500K TO $750K
$750K TO $1.5M
$1.5M TO $3M
$3M+
BY
UNDER $500K
$500K TO $750K
$750K TO $1.5M
$1.5M TO $3M
$3M+
In Q3 2024, all price segments experienced an increase in the average number of days on market compared to Q3 2023. Notably, high-end properties over $3M saw the most significant increase, with days on market rising 119% to 57 days. Mid-tier price ranges ($1.5M to $3M) also experienced a substantial 38% increase, reaching 36 days on average. These trends reflect the nationwide slowdown. The increase in inventory, coupled with slower price appreciation, further highlights how inflation is dampening buyer urgency and extending the selling process.
Elevated inflation has led to higher interest rates over the past year, which the Federal Reserve implemented to curb rising prices. Despite the recent slight decrease in interest rates towards the end of Q3 2024, borrowing costs are still relatively high, placing pressure on buyers and sellers.
UNDER 500K
$3M+ $1.5M-$3M
The lower price ranges (under $500K) have seen a continued decline in market share, now representing just 37%, down from 56% in Q3 2021. Meanwhile, higher price ranges have grown in prominence, with the $750K-$1.5M segment comprising 22% of the market, and the $3M+ category increasing to 3%. This trend points to rising home prices in Nashville and an increased focus on luxury properties.
• Active Inventory Growth - The total active inventory in Q3 2024 increased by 20.6% year-over-year and 9.9% compared to Q2 2024, indicating more properties are available for buyers as the market adjusts.
• Notable Increase Across Price Ranges - Every price range experienced growth in inventory compared to Q3 2023. The $1.5M to $3M segment saw the largest percentage increase, rising by 38%, while inventory for properties under $500K increased by 19%, demonstrating an expanded selection for buyers across both entry-level and high-end segments.
• Luxury Segment Inventory Expansion - The $3M+ category saw a 26% increase in active listings year-over-year, reflecting more luxury properties coming to market, potentially driven by sellers capitalizing on recent price appreciation despite higher borrowing costs.
• Inventory Growth Reflecting Cautious Buyers - As inflation affects daily living expenses, many potential buyers are exercising caution. The growth in active inventory indicates that more sellers are putting homes on the market, but the demand has softened due to reduced affordability. This results in slower price growth, with median and average prices showing only minimal increases year over-year, and even declining quarter-over-quarter.
$500K TO $750K
$750K TO $1.5M
$1.5M TO $3M
$3M+
$500K
$500K TO $750K
$750K TO $1.5M
$1.5M TO $3M
$3M+
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CLIENTS SERVED
STATE SIDES RANK AVERAGE TRANSACTION PRICE 2023 SALES VOLUME STATE VOLUME NATIONAL VOLUME