MARKET RECAP MIDDLE TENNESEE
2023 VS 2024
The Middle Tennessee real estate market showed continued growth in 2024, despite facing some challenges brought on by changing economic conditions and interest rates. Here's a look at the key trends and performance metrics.
MEDIAN SALE PRICE & LUXURY MARKET
P R I C E
The median sale price for homes increased by approximately 5-7% year-over-year (YoY), up from $380,000 in 2023 to $400,000 - $405,000 in 2024. This increase was driven by sustained demand and limited inventory. The luxury segment (homes priced above $1 million) saw moderate price growth, with sales up by 3-5% depending on the county, showing Nashville’ s ongoing appeal to high-income buyers.
NUMBER OF HOMES SOLD
The number of homes sold in Middle Tennessee was relatively flat in 2024 compared to 2023. The lack of growth in sales was largely due to higher mortgage rates and lower housing affordability, leading many potential buyers to hold off or shift to renting. Sellers continue to adjust to a market featuring tepid demand as compared to years past.
A L E S
SMONTHLY SALES TRENDS
Sales activity was notably lower in the first half of 2024 but saw a modest recovery in the summer months, particularly in suburban areas where price growth was more moderate.
THE WALL STREET JOURNAL
JAN. 16, 2025
MORTGAGE RATES TOP 7% FOR FIRST TIME SINCE MID-2024 HIGHER RATES ARE DIMMING HOPES FOR A RECOVERY IN THE SLUGGISH HOUSING MARKET.
LOW INVENTORY
Inventory remained low and only raised slightly from 2023, where as average months supply showed a 6.3% increase.
S U P P L Y
While the overall number of new listings remained stable, many homeowners chose to stay put due to the high rates of existing mortgages. As a result, supply constraints kept the market favoring sellers.
DAYS ON MARKET
Homes in Middle Tennessee continued to sell quickly in 2024 with a slight increase in average days on market compared to 2023. Statistics show an average days on market (DOM) of 20-30 days, compared to 15-20 days in 2023. However, homes priced above $500,000 began to see longer DOMs due to price sensitivity caused by higher mortgage rates.
D. O M. .
Mortgage rates averaged around 77.5% for 30-year fixed loans in 2024, a significant increase from around 56% in 2023. This rise in rates led to lower affordability for many buyers and contributed to the decline in the number of homes sold.
A T E S MORTGAGE RATES
RWhile demand remained strong in certain price ranges, buyers with less purchasing power were particularly impacted by the high rates. As a result, first-time homebuyers faced challenges, and there was a noticeable shift toward renting or opting for more affordable properties.
NASHVILLE
Nashville remained the top driver of real estate activity in the region, with strong demand from both local buyers and out-of-state buyers. The city's continued growth in technology, healthcare, and entertainment sectors kept demand for homes high, although affordability became a growing concern for many residents.
SUBURBS
Suburban areas such as Williamson County, Rutherford County, and Wilson County saw solid price increases in 2024, particularly in areas like Franklin, Murfreesboro, and Mount Juliet. These areas remained attractive to families and buyers seeking more affordable options outside of Nashville proper.
EXURBAN AREAS
While sales were slower in more rural areas, there was growing interest in exurban locations farther from Nashville, driven by remote work trends and a search for larger homes at lower prices.
R E G I O N S
HOME PRICES
Homes experts predict home prices will remain steady in 2025 with moderate increases projected as the market adjusts to high mortgage rates. Inventory is expected to remain tight, but some recovery in listings is anticipated as higher rates may discourage further price increases.
INTEREST RATE
With the possibility of interest rates remaining high in the early part of 2025, buyers may continue to be cautious causing some challenges for sellers and requiring a strong marketing and pricing strategy when coming to market.
LONG-TERM
GROWTH
Long-term growth prospects remain positive due to continued migration to Middle Tennessee, Nashville’ s economic strength, and demand for housing in suburban and exurban areas.
O U T L O O