Middle Tennessee Housing Market Begins the New Year with a Solid Performance

Middle Tennessee Housing Market Begins the New Year with a Solid Performance

Kenneth’s update 02062025… A solid start to the new year! The Greater Nashville area’s very cold month of January 2025 produced respectable activity with good production in closing transactions and pending transactions. Y-T-Y made solid improvements in values, as well as production in key reporting sectors. Increased inventory at month-end and pending transactions set up an expected active February 2025 for Middle Tennessee’s housing market.

Mortgage rates began in January 2025 with a gradual daily increase but peaked on January 13, 2025, and continued with a daily decline through today’s reporting period of February 6, 2025. The chart below, courtesy of Mortgage News Daily, demonstrates the month’s daily flow for the Average 30-Year Fixed Mortgage Rates for the period of January 1, 2025, through February 6, 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).

Should you jump into the real estate market? February offers home buyers and home sellers incentives to participate in Middle Tennessee’s real estate market with increased housing inventory and lower interest rates. 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 January 31, 2025, as follows: There were 1,905 closings; 2,185 pending sales; 10,821 inventory; 56 days on the market; and the median price for single-family dwellings of $490,000, and $339,000 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.