Are you curious about the future of Tennessee’s real estate market? Join us as we dive into the trends, statistics, and predictions shaping the landscape for 2024. The DeSelms Team is here to guide you through the waves of change and opportunity in the dynamic Tennessee housing market.
Tennessee’s Current Real Estate Snapshot
Tennessee homes have been commanding attention with eye-popping prices, a trend that has continued into recent months. In September, the median home sale price rose 1.6% year-over-year to $367,900, reflecting a market characterized by low inventory and high demand. Nashville and Knoxville, in particular, have experienced noteworthy increases in median sale prices, showcasing the resilience and desirability of Tennessee’s real estate.
Market Dynamics: Supply and Demand
The scarcity of homes on the market has led to a seller’s paradise. Tennessee is undeniably a seller’s market with only three months of supply. Interest rates, though at record highs, have not deterred buyers. In fact, 19.5% of homes are selling above the list price, indicating a competitive and robust market.
Advice for Home Buyers and Sellers
For Home Buyers:
If you’re considering buying a home, now may be the opportune time. Despite the 8.5% interest rate, low inventory is driving bidding wars. Act now to avoid bidding wars and take advantage of seller concessions. The 8.5% interest rate may seem daunting, but with rates unlikely to drop in the next few months, this might be the right time to secure your dream home.
For Home Sellers:
The current market allows sellers to lock in Tennessee’s high home prices. Homes listed on the MLS are selling faster and for 17.5% more than off-MLS homes. Take advantage of this trend by listing your property with The DeSelms Team. Sell faster and for more with our expertise.
Tennessee Housing Market Predictions for 2024
As we gaze into the crystal ball for 2024, here are some predictions for the Tennessee housing market:
- Home Sellers Will Return: Sellers who hesitated in 2023 are expected to return, especially those with new jobs or seeking a change. Analysts predict that baby boomers looking to downsize will add up to 30 million housing units to the market.
- Mortgage Interest Rates Will Stabilize: After hitting 7.79% in October 2023, rates dropped to 7.35% in November. We anticipate rates will stabilize above 6% in the second half of 2024.
- Increase in Home Buyers: Historically, high-interest rates deterred buyers in 2023, but as rates stabilize and inflation eases, the number of home buyers is expected to rise.
- Continued Rise in Home Prices: Home prices, which steadily rose in 2023, are predicted to continue their ascent until the supply-demand dynamic changes.
- New Home Constructions Sales Will Increase: In 2023, 12.3% of homes purchased were new constructions. Builders and sellers are expected to compete for buyers in 2024.
- iBuyers Will Continue Making Lowball Offers: As iBuyers struggle, they are likely to make lowball offers in an attempt to survive.
Is the Housing Market in Tennessee Headed for a Crash?
In short, a housing market crash in Tennessee is unlikely. The state’s affordable cost of living, strong job market, and friendly communities make it desirable. The forecast for 2024 suggests a strong market for both buyers and sellers.
Ready to Make a Move?
Whether you’re looking to buy or sell in Greater Nashville Area, The DeSelms Team is here to assist you. Let’s navigate the exciting waves of Nashville’s real estate market together!
