Hello, Davidson County residents and future neighbors! Today, we’re diving into the most recent real estate metrics—specifically, the August 2023 statistics for Davidson County, TN. Let’s uncover what these numbers mean for both buyers and sellers as you navigate this market.
Current State of the Market
Despite interest rates hovering around 7%, competition still remains robust in our local market. One key metric, the “Months Supply of Inventory,” stands at a healthy 2.47. This measurement helps us gauge the balance of supply and demand. In simple terms, the market is still leaning towards sellers having more leverage than buyers. The 2.47-month supply signals a market that is more inclined to favor sellers, albeit not overwhelmingly so. It is important to note that the volume of transactions happening continues to be less than the years of pandemic fever and more akin to the market five or six years ago.
What’s Changing in Davidson County?
First-time buyers, rejoice! You’re finding more success in winning bids in the current climate compared to hotter markets of the recent past. You may even be able to negotiate perks like closing cost assistance or interest rate buy-downs. One reason for this change is the type of sellers currently listing their homes. Many are folks who need to relocate, often due to life-changing events or job opportunities.
Baby Boomers are also actively participating in the market, looking to downsize or seek better weather conditions in retirement. Their strong equity positions add another layer of competition but also mean fewer ‘lateral’ or ‘move-up’ buyers—those who depend on selling their current home to finance the next one.
New Inventory Trends in the Area
A significant change we’re observing is an increase in new construction contributing to the inventory. This is partly because existing homeowners of older homes are hesitant to sell, as they don’t want to forfeit their current low interest rates. Builders have recognized this gap, resulting in more affordable options like condominiums and suburban townhomes cropping up in Davidson County and next ring counties, too.
Other noteworthy metrics include a year-over-year decline of -6.08% in “Months of Inventory” and a “Median Days Homes are On the Market” at just 51 days. These suggest that homes are selling faster than last year, and buyers have less room for negotiation, especially at the lower end of the market.
The “List to Sold Price Percentage” is holding strong at 98.5%. That’s great news for sellers who are getting close to their asking price. Meanwhile, the “Median Sold Price” is at a substantial $457,000, a figure both buyers and sellers should consider when setting their expectations. This median price is down about 1.6% from last year, but that doesn’t mean that prices are trending down. It fluctuates by area and price range. Generally, we are finding that the market at and below 500k remains hot while the luxury market is a bit cooler.
Wrapping It Up
In summary, September 2023’s real estate landscape in Davidson County, TN, is an intriguing blend of opportunity and challenge. Buyers should be ready to act decisively, while sellers can expect a reasonably quick sale at a favorable price.
Navigating this market requires expert guidance. Feel free to contact us for personalized advice tailored to your real estate needs.