“July marks the first time in seven months that Middle Tennessee home sales have been down year-over-year,” said Creswell. “That aside, our pending home sales numbers remain high, proving homeownership is still important and there are plenty of prospective buyers in the marketplace.”
“Despite a slight decrease in sales, median home prices continue to rise. We’re in the middle of the perfect storm that continues to drive up our median prices,” said Creswell. “Nashville is an incredible place to live, so the demand is high. But our low inventory levels make meeting the demand a challenge. At the end of July, interest rates were hovering around 3.5 percent, which is lower than the 4 percent rate this time last year. All of these factors combined contribute to increased prices.
“Homeowners appreciate the gain in home prices, as it positively impacts their equity and investment. But for those trying to buy a home, especially those new to the market, these gains are obstacles. The simple fact remains, until we have more inventory available, home prices will continue to rise. Realtors are hopeful the recent legislative change in how condominiums are approved for FHA financing will add more units to the supply and lessen the burden on first-time buyers.”
As of the end of the month there were 3,724 sales pending, which is a slight increase compared to the 3,708 pending sales we saw at this time last year. The average number of days on the market for a single-family home was also down three days from last year’s 57 days on market.
Nashville Home Inventory by Category
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