Quarter 1 - 2024 Report
Hello Quarter 2!
Now that our clocks have been set forward to Daylight Savings time, and thankfully the harsh snow and frosts are behind us, we are enjoying the delights of spring. Balmy temperatures and beautiful blossoming trees cheerfully gracing our streets and yards. For us, In our East Nashville home, all 19 dogwoods in our front and back yard are in magnificent full bloom.
Along with the warmer weather, the real estate market appears to be warming up as well. In Quarter 1, 2024 Nashville’s median home price for a 3-bedroom 2-bathroom single-family residence jumped from $460,000 in January 2023 to $493,220 in March 2024 - that’s a 7.2% increase for the first three months of the year.
The figures indicate the selling price for SFR homes in Greater Nashville seems to be defying gravity with no sign of easing downward, much to the delight of home sellers. Homebuyers on the other side of the coin, counting on price reductions, saw their hopes dashed in the light of the highest interest rates since 2008. As of mid-April 2024 the average interest rate for a 30-year fixed mortgage in Tennessee was 7.13% according to Bankrate.com published data.
A faint glimmer of hope is for condo home shoppers. The median selling price of Condos saw a slight decrease of -2.6% during those same first 3 months of the year from $349,360 in January to $339,990 in February and March.
Anyone driving around Nashville can’t ignore the change in the skyline with stacks of new high-rise buildings going up all over the city. With tens of thousands of brand-new apartments, renters are spoiled for choice and can nab incentives like four months of free rent. However, with interest rates for construction doubling, putting pressure on construction the rate of newly built apartments has decreased.
Also on the decline is the number of newcomers relocating to Nashville. We’ve seen a 25% drop in population growth - slowing from a high of 1.84% increase in 2021 easing down to a 1.37% population increase for 2024. It seems the lure of the low cost of living that Nashville once offered may be losing its shine.
Nashville Real Estate Rockstars congratulates all our clients for their real estate success 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 Q1 of 2024.