Middle Tennessee Housing Market's Year-End Production Provides Positive Outlook for 2025

Middle Tennessee Housing Market’s Year-End Production Provides Positive Outlook for 2025

Kenneth Bargers | January 8, 2025

Kenneth’s update 01082025… There is a trend! For three months in a row (October, November, December), the Y-T-Y comparisons reported solid increased activity and values for all key indicators setting the table for an active housing market in 2025. The expected seasonal decline from M-T-M reported a welcome increase in closings (December’s 2,842 transactions compared to November’s 2,383 transactions).

Mortgage rates continue to show little fluctuation though a slight increase occurred. The chart below, courtesy of Mortgage News Daily, demonstrates the overall trend for the Average 30-Year Fixed Mortgage Rates for the period of December 1, 2024, through December 31, 2024, showing a slight increase throughout the month, except for MBA reported decline. 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 as we welcome 2025? January may offer home buyers and home sellers incentives to participate in Middle Tennessee’s real estate market. 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 during the winter months.

The Greater Nashville REALTORS® recently released a report for the month ending December 31, 2024, as follows: There were 2,842 closings; 1,593 pending sales; 10,109 inventory; 50 days on the market; and the median price for single-family dwellings of $500,000, and $341,520 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.