We try to keep a close eye on the real estate market here in Nashville, so that we can help you make the most informed decision possible on your next real estate transaction. While Nashville is still one of the hottest markets in the nation, the latest numbers released by the Greater Nashville REALTORS® might indicate that we’re starting to see home buyer activity beginning to level out some.
April is supposed to be the beginning of the hot real estate buying season, but home sales actually slipped slightly compared to last month.
So we have to ask…Why? And what does this mean?
Well, according to President of GNR, Scott Troxel, it’s not for lack of people wanting to buy a home, but instead its due to the continued lack of home inventory. To illustrate, he stated, “The increase in year-over-year home sales for April was slightly lower than the gains we’ve seen the in the past several months.
So really what we’re seeing is the market adjust itself until we can generate more housing inventory for the high demand in Nashville. It may not be as fast and furious of a pace of what we’re used to seeing, but Troxel explains that “achieving double-digit gains each month compared to the prior year is nearly impossible to sustain without a matching growth in inventory. Smaller, steady gains are more desirable and contribute to a long-term healthier market.”
Are we in for a market slowdown?
With the information we have, I would have to say no. The average sales price in April still increased by 10% year over year and the average days on market was 47 days, which was a decrease of 11 days compared to last April. These are definitely not signals of a slowdown in the market…..it just reinforces the notion that there are not enough homes for the amount of demand.
Here’s a look at the housing stats for April in more detail:
Real Estate Closing by Category
Nashville Home Inventory by Category
There were 3,540 sales pending at the end of the month, compared to the 3,198 pending sales in April 2016. The increase in pending sales year over year is also a good indication of a strong market.
What’s the Outlook for the Rest of the Year?
We are predicting that this will still be one of Nashville’s strongest years for residential real estate in recent memory. In fact, Troxel stated that “Year-to-date sales are up by almost one thousand units, making it likely we will see 40,000 or more closings this year, something we haven’t seen since 2006.
Thinking about buying or selling a home in Nashville?
Feel free to connect with us. As local experts, we help our clients find the right house in this hot Nashville market and sell their home quicker than the industry average.