As the year winds down, the local real estate market for Middle Tennessee, including Williamson, Maury, Davidson, Rutherford, Sumner, and Wilson counties, is showing notable trends that highlight both challenges and opportunities for buyers and sellers. Here’s a breakdown of the latest data and what it means for you.
Key Trends in the Local Market
New Listings and Under Contracts:
New Listings: Down 6% year-over-year (YoY) to 2,993.
New Under Contract: Up 29% YoY to 1,944.
Insight: While fewer homes are being listed, more buyers are jumping in, potentially signaling confidence in stabilizing mortgage rates.
Inventory and Closings:
Active Inventory (Avg): Up 15% YoY to 6,592.
Total Inventory: Up 12% YoY to 10,205.
Closings: Up 6% YoY to 1,876.
Insight: Rising inventory levels give buyers more options, while steady growth in closings indicates a healthy market.
Pricing Dynamics:
Average Sale Price: Up 6% YoY to $687,384.
Median Sale Price: Up 7% YoY to $519,900.
Average List Price (Active): Down 4% YoY to $908,503.
Insight: Sellers might be pricing more competitively, but rising sale prices indicate strong demand for quality homes.
Days on Market (DOM) and Supply:
Avg DOM (Closed): Increased 20% YoY to 30 days.
Months of Supply: Up 7% YoY to 4.26 months.
Insight: Homes are taking slightly longer to sell, but the market remains balanced with a supply just above four months.
How This Compares Nationally
The National Association of REALTORS® reported a 2.9% YoY increase in existing-home sales for October, marking the first annual gain since July 2021. National median home prices rose 4% YoY to $407,200. Locally, our median price of $519,900 reflects the premium appeal of Middle Tennessee’s market, bolstered by strong job growth and demand for suburban living.
National inventory levels sit at 4.2 months’ supply, nearly identical to our local supply of 4.26 months, showing a consistent trend of modestly improving inventory across the board. Mortgage rates have also stabilized nationally, hovering in the high 6% range for 30-year fixed-rate loans, which has helped restore some buyer confidence.
Current Mortgage Rates
Mortgage rates have settled into a more stable range, with 30-year fixed rates averaging 6.68%. Though higher than pre-pandemic lows, this stability provides much-needed predictability for buyers planning their budgets. The recent easing from rates above 7% in November is a welcome sign and aligns with a broader trend of moderation in borrowing costs.
For Buyers: With active inventory up 15% and prices continuing to rise, prospective buyers may find a growing selection of homes but should act decisively, as competitive pricing may lead to bidding wars. Stable mortgage rates make now a good time to lock in financing and entertain moving forward on a purchase. As the new year beginnings and the potential for rates to drop further in 2025, home prices could increase.
For Sellers: While homes are taking slightly longer to sell, rising sale prices are encouraging. Sellers should focus on pricing strategically and highlighting their property’s unique features to stand out in a slightly more competitive market.
Overall Market: The local market is moving toward balance, with inventory and sales activity reflecting steady growth. National economic stability and local job creation will likely sustain demand in Middle Tennessee. However, any sharp changes in mortgage rates or broader economic conditions could shift market dynamics.
Advice for Those Thinking of Buying or Selling Soon
Buyers: Consider acting now while mortgage rates are stable and inventory levels are improving. Focus on pre-approval and staying flexible to compete in a market with rising demand.
Sellers: Prepare your home thoroughly, and price competitively to attract motivated buyers. The upcoming months may see increased activity as buyers try to secure homes before any further price increases.
Middle Tennessee remains one of the most attractive real estate markets in the country, offering robust opportunities for both buyers and sellers. As 2025 approaches, staying informed and working with knowledgeable real estate professionals will be key to navigating this dynamic market.
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