From world-class entertainment to a thriving local economy, there is so much to love about living in Nashville, Tennessee. Considered the Country Music Capital of the World, Nashville is a lively, bustling metropolis where there’s always something fun on the roster. Whether you prefer living in a glitzy, high-rise condominium or a charming single-family home, there is nearly every type of residence imaginable in Music City. Read on for a look at the recent market fluctuations on the Nashville real estate scene and a prediction of where we might be headed.
Housing market forecast 2023
In recent years, Nashville has had record-high migration and is considered the 5th fastest-growing metro
in the nation. In fact, the Nashville real estate market was considered one of the country’s most competitive markets in 2022. Yet, as we proceed through 2023, many prospective homebuyers and sellers wonder whether or not this trend will continue. Will Nashville’s market remain competitive, or will it slow down? Will Nashville’s market favor buyers or sellers? Here’s everything you need to know about Nashville’s real estate market for 2023.
During 2021 and 2022, there was a nationwide real estate boom. This was due to many factors, including record-low interest rates, a massive influx of millennial homebuyers entering the housing market, and more workers working remotely than ever before. This and other factors increased real estate demand to record highs. This was especially evident in the Nashville metropolitan area. While most big-city markets experienced a three-year market appreciation from 2020 to 2023, Nashville’s market appreciation has increased by over 46.0%
over the past three years. As home prices continue to rise in most Nashville neighborhoods, home values are expected to continue to increase throughout Davidson County.
Although home prices have begun to level out compared to the competitive seller’s market of 2021 and 2022, prices are still rising overall, according to the latest data from the Greater Nashville Realtors
. For example, in January 2022, the median price of Nashville homes was $425,000, which then rose to $498,000 in May 2022. As of January 2023, the median home price had fallen slightly to $450,000. Although this represents a slight cooldown in the market, prices are still higher year-to-year and track with the typical decrease in buyer activity seen during the winter.
Lowering interest rates
While interest rates hovered at 3-4% during the majority of 2021 and 2022, interest rates rose to over 7%
in November 2022, the highest they have been since 2008. As of February 2023, interest rates averaged 6.3%
to level out rising interest costs. While rates will unlikely dip to 4% or lower, interest rates will likely level out and stay below 7% for the foreseeable future.
Nashville real estate market trends 2023
Compared to many major metropolitan areas, Nashville has been experiencing unparalleled growth since the 1990s. With one of the country’s healthiest local economies
, Nashville continues to be one of the nation’s fastest-growing metropolitan areas for the foreseeable future. With around ten Fortune 500 companies headquartered in Tennessee, Nashville’s robust economies and world-class dining and entertainment are some of the many reasons why Nashville continues to see population growth every year. Furthermore, economists predict Nashville will be the fastest-growing city by 2060
Considering these factors, Nashville properties will likely retain their value and continue to appreciate annually, making Nashville an excellent market for real estate investment.
Nashville foreclosure statistics 2022
While Nashville has one of the most robust local economies in the country, inflation rates have negatively affected many Nashville households. As a result, more families have struggled to afford to keep up with the ever-increasing cost of living, which has resulted in increased foreclosure rates from 2021 to 2022. From January 2022 to June 2022, 347
Nashville homes went into foreclosure, a 292% increase from the first half of 2021.
Median home prices in 2023
While buyer demand has leveled out compared to 2021 and 2022, Nashville remains a seller’s market, where the demand for real estate still surpasses available housing inventory. Even though many buyers nationwide have been hesitant to start the house hunting journey due to rising interest rates, inflation, and overall economic uncertainties across the country, Nashville remains a highly sought-after, competitive real estate scene that will always be in high demand.
Overall, Nashville’s home values will continue to increase during 2023. According to the latest data
from the Greater Nashville Realtors, the median home price is $450,000 for residential homes and $325,000 for condominiums, both of which are higher than the year before. While median home prices vary based on neighborhood, Nashville remains one of the country’s most competitive real estate markets in 2023.
Ready to get started?
While 2021 and 2022 were the peak of Nashville’s red-hot real estate market, the 2023 Nashville market remains competitive compared to many of the country’s major metropolitan areas. Thanks to its robust local economy and projected future job growth, the Nashville real estate market is predicted to continue to grow during 2023 and beyond.
Even though Nashville remains a seller’s market, housing inventory has increased in 2023, giving prospective homebuyers and investors more opportunities to place bids on their ideal properties. Buyers may find that they have more homes to choose from and less pressure to make an offer immediately. With a more stable real estate market on the horizon, the 2023 Nashville real estate market is beneficial for both buyers and sellers alike.
Either way, teaming up with an expert local agent will ensure that you experience a streamlined, successful selling or buying journey. If you’re selling a Nashville home, your agent will come up with an accurate listing price and devise a competitive marketing strategy that is sure to get your home seen and sold. If you’re buying a property, your agent will connect you with homes that check all the boxes and meet your budget.
Are you searching for your dream home in the heart of Nashville? Trust Debbie Gregory
with all your Nashville real estate
needs. With many years of industry experience and local expertise, Debbie will help you navigate Nashville’s real estate market without all the stress. Contact Debbie
today to get started toward your goals.*Header photo courtesy of Shutterstock