Housing Inventory Increases and Pending Sales Decline in a Mixed Reporting Period for Middle Tennessee

Housing Inventory Continues to Increase and Pending Sales Continue to Decline in a Mixed Reporting Period for Middle Tennessee’s Housing Market for May 2025

Kenneth’s update 06102025… Housing inventory continues to increase for the sixth consecutive month reaching listing availabilities of 14,180 as of May 31, 2025. In contrast Pending Sales reported a decline for the second consecutive month. Closings, Single-Family Dwellings median value, and Days of the Market process of contract to closing all improved M-T-M, with the value of the Condo/Townhome classification statistically unchanged. Y-T-Y produced improvements for Closings, Inventory, and median value of Single-Family Dwellings.

Mortgage rates ended the month slightly higher but stayed below 7% except for a spike in the 4th week of May, going about 7% before decreasing to a 6.95% Mortgage News Daily rate as of May 31, 2025. The following chart, courtesy of Mortgage News Daily, demonstrates the month’s daily flow for the Average 30-Year Fixed Mortgage Rates for the period of May 1, 2025, through May 31, 2025. The chart provides an average 30-year fixed mortgage rates from several different surveys including Mortgage News Daily (daily index), Freddie Mac (weekly survey), Mortgage Bankers Association (weekly survey) and FHFA (monthly survey).

The continuing saga of instability of our National economic policies and economic goals appear to be influencing home buyers as we enter the summer months in Middle Tennessee. The Greater Nashville area offers diverse and solid economic conditions as an incentive for Buyers to invest in the Middle Tennessee real estate market, along with an abundance of available listings and the continued slight fluctuation of mortgage rates. It truly is a great opportunity to focus on the local conditions and for Buyers to take advantage of the current conditions. Should you jump into the real estate market as we enter the summer months? Contact your trusted lender to evaluate your home buying power dollars, and your favored REALTOR®, to discuss the current conditions and take advantage of the home buying and selling process.

The Greater Nashville REALTORS® recently released a report for the month ending May 31, 2025, as follows: There were 3,164 closings; 2,706 pending sales; 14,180 inventory; 47 days on the market; and the median price for single-family dwellings of $506,557, and $349,250 for condominium classifications. The data collected for this release represents nine Middle Tennessee counties: Cheatham, Davidson, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson, and Wilson.

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Pending home sales – Pending Home Sales is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales is not identical for all home sales.

MAY 2025 REPORTING PERIOD SLIDESHOW: https://youtu.be/quU6Sej2h1s?si=k2Mxt9JCC_3zm6Nd