Tennessee housing market: Everything you need to know
The housing market in Tennessee has witnessed remarkable growth in recent years, with prices soaring to new heights. As of March 2023, the median home price stands at $360,000, marking a substantial increase from just over $250,000 in March 2020. This surge is indicative of robust demand driving up prices. However, the market is showing signs of a slowdown, with properties staying on the market for an average of 58 days, up 25 days from the previous year. Over 20 percent of homes sold in March had to reduce their prices. In this blog post, we’ll delve into the current state of the Tennessee housing market, key trends, and offer insights for both buyers and sellers.
Tennessee Housing Market Overview
Median Home Price and Growth:
According to Redfin data, the median home price in Tennessee has experienced a 2.1 percent increase since March of the previous year, reaching $360,000 in March 2023. While this signifies substantial growth, it remains slightly below the national median home price of $375,700.
Sale-to-List Price:
On average, homes in Tennessee are selling for 98 percent of their listed price, indicating that 2 percent of homes are selling for less than their initial asking price.
Days on Market:
Properties are now staying on the market for an average of 58 days, a significant jump from 33 days in March 2022. This suggests a slowdown in the market compared to previous years.
Average Closing Costs:
Closing costs in Tennessee typically amount to 1.4 percent of the sale price, translating to just over $5,000 for a median-priced $360,000 home.
Considerations for Home Sellers
While rising home prices present a favorable environment for sellers, it’s important to acknowledge the market’s deceleration. With higher interest rates and an increased inventory of homes (approximately 25 percent higher year-over-year), buyers now have more options. Setting the right asking price is paramount. An experienced local agent can conduct a comparative market analysis to help determine your home’s value and advise on any necessary preparations before listing.
Considerations for Homebuyers
Prospective buyers in Tennessee now have a wider selection of homes to choose from compared to the previous year. However, as the market traditionally picks up in warmer months, it’s crucial to act promptly. Getting preapproved for a mortgage can provide a clear budget and signal to sellers that you are a serious buyer. Additionally, researching the cost of living in your desired area is essential, as expenses may vary depending on your location.
Tennessee Housing Market Predictions
Despite uncertainties in the economy and significant increases in mortgage rates, experts believe the market is in a course-correction phase rather than heading towards a crash. While prices continue to rise, the pace may not be as steep as before.
Conclusion
The Tennessee housing market offers opportunities for both buyers and sellers, but it’s crucial to navigate the current conditions wisely. Engaging an experienced local agent can be a game-changer, ensuring you make informed decisions in this dynamic market.