Nashville Real Estate Market Forecast 2023

Out-of-state buyers are flocking to land in Nashville luxury homes. In 2022, Music City was listed as the third favorite town to relocate to across the country. The town's growth is exponential, with a thrilling entertainment culture, prestigious educational institutions, and a rich heritage. The cost of living in Nashville is bringing new residents from places like sunny California. These realities give the region an aura of prestige even in the most challenging markets. Additionally, real estate trends are looking to even out.

Here are some concepts that prove 2023 will be a bountiful year for this Tennessee hub.

Nashville’s prosperity is evident despite growing inflation. Agents share encouraging thoughts about home buying, even when faced with a brutal market where buyers are hesitant to enter the housing scene. The key is perspective: we can’t compare apples to oranges. There are ample warnings of interest rates marching upward, yet the current 6% is refreshing compared to the 8% from years ago. The upward trend of home prices isn’t fixing anything in terms of buyers entering the house hunt, and sellers will most likely compromise at the closing table to get their houses off the market. Transactions like this will cause sales trends to even out. When considering these real estate principles, buyers and sellers can rest assured that brighter days are coming quickly.

Headlines shouting about declining closings and rising home costs are being calculated against a highly unusual trend. As the Greater Nashville Realtors President reminds us, 2021 brought a spike in sales and a market boom due to pent-up demand. Those who delayed activity during the pandemic were bursting to go out and find their dream homes. As a result, an astronomical benchmark was created. This cast a shadow over the 2022 forecast. Although it may seem that facts and figures illustrate a tough market, it’s essential to realize that the industry is coming down from a whirlwind and returning back to normalcy.

While experts pontificate on how trends may shift, the truth is that many factors can sway the real estate market in varying directions. The economy's strength, governmental activity, and supply and demand can cause seismic shifts in the housing scene. The availability of properties and buyer interest pushes dominance between buyers and sellers. Mortgage interest rates and the fluidity of capital can impact home sales significantly. If home buyers can’t borrow, they can’t buy. With so many pokes in the fire, it’s no wonder that even the most experienced financiers struggle to calculate what’s coming in the future.

By looking at the movement in the Nashville housing market, it’s clear that home sales have held steady in this dramatic year. From January through August, homes were leaving the market in less than 30 days. September showed a slight uptick to 32 days, followed by 39 days in October and 41 in November. Certain communities have shown improved performance, as seen from quarterly sales figures. In addition, the median sales price of residential properties has increased in the last year, with the median sales price for single-family Nashville homes rising from $414,583 in 2021 to $475,000 in 2022—a 14% increase. Condos have fared similarly, rising up by 20%, from $298,000 in 2021 to $335,000 in 2022. That said, the number of closed listings has indeed dropped by 13.5% from 4,022 in 2021 to 3,478 in 2022.

When there is an inventory surplus, this indicates a buyer’s market as opposed to a seller’s market. The Greater Nashville Realtors association predicts an increase in inventory that will give buyers the upper hand. The year-over-year growth percentage is an impressive 84%. In September of this year, there were 9,765 live market listings, as opposed to just 5,307 in September 2021. Sellers will most likely allow some give on their price tags in order to sell more quickly, which is a happy fact for home buyers. This range of options is fantastic for new homeowners, but what can a seller do?

If it’s essential to list your home now, there are several ways to succeed despite trends shifting the other way. Excellent home staging, investments in upgrades, and advanced marketing strategies can lead to a home sale in any climate. Prioritizing home value will lead to greater returns. A seasoned Nashville real estate agent can guide you on the best methods to get your home on top of the pack.

Nashville is a thrilling destination, so its alluring atmosphere makes it a winner in any scenario. The Grand Ole Opry is one of the city’s most popular attractions. This centurion concert hall has kicked off the careers of numerous country musicians. Dolly Parton, the Judds, Zach Brown, Garth Brooks, and other singing powerhouses frequently return to the Opry. This venue's enormous profit from national and global attendees greatly benefits Nashville and its housing scene.

Restaurants from out of state recognize the opportunity that Music City brings. While the Tennessee town already has a hopping nightlife, the crowded sidewalks and packed clubs suggest partiers need more pubs. Cafe franchises based in urban headquarters like New York City, Los Angeles, and Dallas are seeing the prolific landscape.

While real estate is one of the more prominent profit makers in any community, retail is also a significant contributor. There is no shortage of shopping splendor in the Athens of the South! The Hill Center Brentwood attracts throngs of elite shoppers year-round. Opry Mills is the perfect way to pass the time while waiting for a show to start. As a vibrant, energetic, and upwardly-mobile city, Nashville is clearly looking at a sparkling future.

If you’re intrigued by all that Nashville has to offer, reach out to leading agent Danielle Beasley for guidance on your real estate journey. Danielle is a leader in the Nashville real estate industry and would love to help you every step of the way. Danielle is highly familiar with Nashville market trends as a 20+year resident and can navigate you through all the twists and turns of the buying or selling process. Contact Danielle for top-tier guidance on making the most profitable decisions no matter where market fluctuations lead.