Downtown Nashville
Nashville Residential Market Report - Q3 2023: Transitioning to a More Neutral Market
Nashville, TN / USA - (last modified October 20, 2023 at 6:00am )

 

The residential real estate market in Nashville is showing signs of evolving this Q3 2023. While many key metrics remain favorable for sellers, increasing indicators suggest a trend towards a more balanced market. Below is an updated analysis of the quarter's statistics with particular emphasis on market normalization factors.

Key Metrics (Highlighted Changes)

Metric Value Quarterly Change Year-over-Year Change
New Listings 853 5% 5%
New Under Contract 488 2% 10%
Active Inventory (Avg) 1,477 3% 38%
Under Contract Inventory (Avg) 826 5% 10%
Total Inventory 2,303 0% 16%
Closings 586 17% 2%
Average Sale Price $770,938 8% 6%
Median Sale Price $555,000 4% 1%
Average Days on Market (Closed) 21 16% 82%
Average List Price (Active) $1,071,764 1% 10%
List to Contract (Avg) 49 days 18% 43%
Contract to Closed (Avg) 49 days 2% 10%
List to Closed (Avg) 105 days 3% 47%
Months of Supply 3.34 14% 23%

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Analysis

Moving Towards a Neutral Market

- Highlighted: Months of Supply: The Months of Supply figure has increased by 14% this quarter and 23% year-over-year. While the market still leans in favor of sellers, this increase signals a transition towards a more neutral market, making it less stressful for buyers.

  

- Highlighted: Increase in Days on Market: The Average Days on Market (DOM) has increased by 16% this quarter, another indicator of market normalization.

- Highlighted: Total Inventory Increase: A 16% YoY increase in total inventory is lessening the frequency of bidding wars, enabling more conventional negotiations.

 

For Sellers:

- Good Time to Sell: Sale prices continue to climb, and homes are still moving relatively quickly, making it a good time for sellers to enter the market.

  

For Buyers:

- More Options, Less Pressure: With more active inventory and a gradual increase in DOM, buyers have more choices and more time for thoughtful decision-making and negotiation.

 

For Investors:

- A Balanced Playground: Increasing inventory and sale prices, coupled with the shift towards a more balanced market, create an investment landscape that's ripe with opportunity.

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Final Thoughts

Nashville's residential market in Q3 2023 seems to be undergoing a transition. While it remains a seller's market, the increase in Months of Supply, Average Days on Market, and Total Inventory indicates a gradual move toward a more balanced marketplace. This shift allows for fewer bidding wars and more room for negotiation, presenting a more favorable environment for both buyers and sellers.

Stay tuned to our blog for the latest insights into the Nashville real estate market, and feel free to reach out to our expert team for personalized real estate advice.

Happy house hunting and selling!

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