Quarter 4 - 2023 Report
Happy New Year 2024!
As winter temperatures dip and storms envelop much of the US, bringing heavy snow, rains, and tornadoes; here in Nashville, we're enjoying the first snowfall for the year. Meanwhile, those following the ups and downs of the real estate market in Nashville are wondering if now is a good time to sell or buy a home.
Since March of 2022, homebuyers have weathered 11 interest rate hikes imposed by the Fed to reduce inflation. Many wonder if home prices will drop in 2024 to offset those higher-interest mortgage payments. While no one has a crystal ball, mortgage rates are predicted to slowly decline throughout 2024 as inflation eases. Experts are forecasting an average interest rate of 6.8% and an estimated rate of 6.5% by year’s end.
Yet even as home buyer demand has slowed, extremely low supply has kept home prices from falling and producing the inventory bonanza homebuyers were hoping for. Prices increased somewhat in 2023, and experts predict they'll likely go up in 2024 as well. Most major forecasts predict that home prices will end 2024 between 0.7% and 4.1% higher than they are right now much to the frustration of home buyers.
The ray of sunshine for Greater Nashville homebuyers is that home prices aren’t rising as steeply as they were during the height of the pandemic. With less competition and a more subdued market, buying and selling a home is a way less stressful experience than it has been for the last several years. The Fed’s approach seems to have worked to calm things down.
Now is the time to act.
If you’re contemplating selling or buying in Spring 2024, now is the time to get started. March will be here before we know it with the more competitive summer market following close behind.
Nashville Real Estate Rockstars congratulates all our clients for their real estate success in 2023 and we look forward to helping more clients move forward with their real estate goals in 2024.
Now let’s look at the numbers for the 4th quarter of 2023.