NASHVILLE, Tenn. (WTVF) — A big story happening across the country right now is all about real estate. When looking back at the history of the market in the area there is a notable difference when it comes to price and inventory.
The Greater Nashville REALTORS post monthly market datadescribing the circumstances going back to 2018.
"Greater Nashville REALTORS® mission has remained consistent however over the 130-year history by providing real estate professionals a structured organization that works toward uniting members to exert a beneficial influence on the profession and to promote and maintain high standards of professional conduct," its website said.
When looking at inventory, there is a stark difference when comparing January 2018 and January 2022.
In January 2018, the inventory was at 5,565 for residential. Fast forward to January 2022 and it dropped down to 2,124.
The drop is not from fewer houses being produced, but rather demand.
"Not only with people, local people, wanting to move from apartments to homes, but also regional people moving maybe from Atlanta or Knoxville, moving to Nashville for jobs," President of Greater Nashville REALTORS Steve Jolly said.
When it comes to average home prices over the years that does the opposite as inventory with the numbers jumping up over the years.
- January 2018: $281,500
- January 2020: $305,950
- January 2022: $425,000
“It's strictly competition-based. You know, there's more people for every home that hits the market, there may be 10 or 20 people that want to purchase that home. And so, with that many people wanting to buy it, that's what naturally drives the prices up," Jolly said.
Jolly said another reason we have seen the price hikes over the years is from people moving from more expensive areas, think of LA or Chicago. They have more cash from selling their place.
"The increase in price was really the most shocking thing that we saw in the last year because really that's unsustainable and it's not healthy for the long-term growth of Nashville," Jolly said.
When it comes to prices, do not expect them to get cheaper. Jolly said Nashville's market history has been on a steady rise.
"I don't expect prices to decline in Nashville anytime soon. However, I do expect the rate of appreciation to slow down," Jolly said.
Editor's Note: The attached video addressed Steve Jolly as a part of the Greater Nashville Realtor's Association. The organization is called Greater Nashville REALTORS.