According to recent reports and forecasts, the Nashville real estate market could be one of the hottest in the nation through 2022 and into 2023. Tight supply conditions, combined with strong demand from home buyers, have increased competition and home prices all across the metro area.
One forecast predicted that the Nashville housing market could see double-digit price growth over the next year, as it did during 2021. Here are the latest trends for this highly competitive market.
Forecast for Nashville Housing Market: 2022 – 2023
According to the real estate data company Zillow, the median home value for Nashville, Tennessee rose by around 26% over the past year alone. That brought the median house price up to around $405,000 — the highest it has ever been.
The company also issued a strong forecast for the Nashville area real estate market in 2022, in terms of price growth. By their estimation, home prices within the broader Nashville metro area could rise by more than 20% over the next year.
(This particular prediction was issued in February of 2022 and extends into the same month of 2023.)
The chart below shows the median home value for the Nashville-Davidson-Murfreesboro metro area over the past year or so. It also shows Zillow’s forecast going into 2023, in the green shaded area.
As you can see, home prices within the metropolitan area have been trending upward for quite some time, with an acceleration during 2021. You can also see that Zillow’s forecast for the Nashville housing market through 2022 and into 2023 suggests a continuation of this trend.
One of the ‘Fastest’ Real Estate Markets in the U.S.
On February 8, 2022, researchers from Realtor.com published a housing market update with data for the 50 largest metro areas in the country. According to that report, Nashville is currently the “fastest” housing market in the U.S., in terms of home sales.
Among the nation’s top 50 metropolitan areas, the Nashville metro area had the lowest number of “median days on market.” That means homes are selling faster there than in the other 49 metro areas contained in the report.
According to Realtor.com:
“Compared to January’s national pace, homes sold even more quickly in the 50 largest U.S. metros, with listings flying off the market in 36 days or less in Nashville, Tenn., San Diego, San Jose, Calif., Denver and Raleigh, N.C.”
Home buyers who are planning to buy a house in the Nashville area during 2022 should be ready to hit the ground running. It’s a highly competitive real estate scene.
Inventory Remains Very Low In 2022
The Nashville area has experienced steady population growth in recent years. Among other things, this has depleted an already-low housing inventory situation.
As of early 2022, there aren’t nearly enough homes for sale in the Nashville real estate market to meet the demand from buyers. This has created a highly competitive housing scene while boosting home prices at the same time.
According to the Realtor.com report mentioned earlier, the total number of active real estate listings within this metro area declined by nearly 49% over the past year or so.
The Nashville-area housing market was down to about a one-month supply of homes for sale, as of January 2022. That was well below the national average for the same timeframe, and miles below what’s considered to be a balanced housing market.
This also explains why homes are selling so quickly within the Nashville metro area. There are plenty of buyers in the real estate market seeking properties, but not enough homes for sale. This imbalance will likely persist for the foreseeable future.
Given these conditions, it should come as no surprise that many homes end up selling for more than the original list price. This is a common trend in many of the nation’s hottest real estate markets, and Nashville is no exception.
Tight supply conditions are forcing buyers to compete fiercely, and that often results in offers that exceed the seller’s list price.
Summary: Buckle Up, Home Buyers
We’ve covered a lot of trends in this Nashville real estate market forecast for 2022. So let’s wrap up with a summary of the key points:
- Nashville housing market forecasts predict double-digit price growth over the next year.
- Tight supply conditions have increased competition within the local real estate scene.
- The total number of active real estate listings declined significantly over the past year.
- The Nashville housing scene is one of the fastest in the nation, in terms of sales activity.
Disclaimer: This article contains predictions and forecasts for the Nashville, Tennessee real estate market through 2022 and into 2023. Those predictions were issued by third parties not associated with the publisher. Bear in mind that no one can predict future housing trends with complete accuracy.