NASHVILLE, Tenn. (WTVF) — Higher prices and skyrocketing interest rates are limiting what home buyers can afford in Middle Tennessee, which is leaving more homes on the market compared to two years ago.
Data from Greater Nashville Realtors reveals that the number of single-family homes on the market grew 47% over the last month, but you must have a major budget to buy a home in the area.
The median price for a residential single-family home was $498,785, and $340,506 for a condominium. Last year’s median residential and condominium prices were $400,000 and $277,900, respectively.
Inventory at the end of May 2022 was 5,836, up from 4,308 in May 2021.
The group's new data suggests not many people can afford to buy in this market.
In May, there were 3,982 home closings reported, according to figures provided by Greater Nashville Realtors. This figure is down 2% from the 4,063 closings reported for the same period last year.
Steve Jolly, Greater Nashville Realtors president said that in the last month, the combination of high prices and interest rates are really limiting what buyers can afford right now.
They don't expect prices to fall anytime soon. Jolly said most economists expect interest rates to fall when the Federal Reserve has inflation under control.
They said if you are looking for a home and have the money to do so it's a good time to be in the market.