The real estate marketplace ranked Music City No. 5 on its list of 10 large metros, with data primarily supporting increased interest in the Midwest + Southeast regions. Markets made the list based on price growth, inventory and velocity, and demographics.
Nashville’s market at a glance
💰 Price growth: Record-breaking home value growth is declining following high mortgage interest rates, according to Zillow predictions. Nashville had the fifth-highest annual home value growth in 2022, but is expected to drop six places this year.
🏘️ Inventory: Based on data collected by Greater Nashville Realtors, 2022 saw an overall increase in total housing inventory month over month. Homes stayed on the market for an average of 24-29 days at the beginning of 2022, increasing to between 30-45 days in the latter months.
Zillow indicates that markets with high buyer demand and low inventory last year will likely see increased demand in the new year comparative to other markets.
“2023 will likely bring great opportunities for buyers with rising inventories and longer days on market,” Greater Nashville Realtors president Brad Copeland said. This prediction is based on total sales dropping 15% and 40% fewer closings from 2021 to 2022.
What’s making Nashville so hot?
Bobby Johnson, assistant managing broker for Zeitlin Sotheby’s International Realty, broke down the top five Nashville housing trends he anticipates this year.
Rural rules: Nashville’s surrounding counties (Williamson, Cheatham, Dickson, Sumner, and Wilson) will continue to see strong demand. Neighborhoods like The Grove in College Grove and Westhaven in Franklin are especially popular among out-of-state buyers based on walkability, number of luxury options, and neighborhood amenities.
Homebuyers still desire privacy and space. Continued trends of remote and hybrid work indicate buyers are more comfortable commuting longer distances.
Uptick in urban: The city will remain steady as private corporations continue to invest in various areas. Bobby particularly anticipates a focus on The Nations, Sylvan Park, and Cleveland Park — with Cleveland Park experiencing a “significant impact due to the proximity to the Oracle development and the recently announced East Bank development plans.”
A buyers boom: The average Nashville buyer will have far more opportunities this year to negotiate, causing them to re-enter the market in 2023. Buyers who put home searches on hold last year with rising interest rates have started searching for a home to purchase in the new year as their current leases begin to expire.
Out-of-state buyers moving in: A trend that’s set to stick around. Johnson credits the addition of corporations like Amazon, Oracle, In-N-Out + workforce expansion of plants like Spring Hill’s GM as a significant contributor to Middle Tennessee’s economic outlook and job market, and thus, desirability.
Emphasis on energy efficiency: Outside of “wants” that remain constant in the new year (home offices, green space, and walkability), Johnson suspects buyers will prioritize energy efficiency in their homes, solar panels, and home generators in order to navigate Nashville’s extreme weather and intense storms.