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Data finds locals face a disadvantage in Nashville's competitive real estate market

Buyers struggle to compete in Nashville's tough real estate market
Posted at 5:03 PM, Feb 23, 2022

NASHVILLE, Tenn. (WTVF) — Homebuyers across the country relocated during the pandemic, many opting for more "affordable" cities than where they were living. The ability to work from home and low mortgage rates made the move even easier.

"This market is competitive and you have a lot of people who really want to be in a home and they'll do anything they have to go get into a home," said simpliHŌM realtor Santana Jones.

But the trend is putting locals at a disadvantage.

"A home like this is gorgeous, open concept... granite counters, gas stove," said Jones standing inside a brand new Edgehill home. "Who wouldn't want a house like this?"

In a market with cutthroat competition, locals like Matthew Morland are losing out. "[It's] frustrating," he said. "I would also say repetitive, tiring, exhausting."

Morland said he's exhausted by the housing market in this city known as the bachelorette capital of the world.

"I'm tired of being a bridesmaid. I've actually had six different homes that I've put offers on where I'm offering $15,000 to $20,000 over asking and I'm losing out on these left and right for $40,000 to $50,000 of cash offers with no inspection on these homes," Morland said.

A new migration analysis by Redfin tracked budgets across the country of locals compared to out-of-towners. The city with the biggest gap in budgets? Nashville.

"Some of these people might now be seeing equity in their home that they hadn't realized before. So they're taking the opportunity to cash out on that and move to states like Tennessee where there are no state income tax," said Hope Geyer, team manager of Nashville Redfin. She said 50% of homes in Nashville are selling over list price.

Cities like Miami, New York and Atlanta fell behind Nashville, where out-of-towners had more to spend than locals.

"My last four buyers were from California," said Jones. "So I have some investors, I have some people who are moving here, just want a new area, new location."

As more and more people move to Music City, homes will continue to sell for top dollar.