Whether you’re googling your next move or you’re just a frequent Zillow scroller, this new home buyer index might help you keep better tabs on the Davidson County market as it shifts from month to month.
How it works
A real estate industry analyst, bank economist from the Federal Reserve Bank of Atlanta, and other experts helped develop the tool, according to NBC News. A 0-100 scale (the higher the number, the harder) generally represents a Nashvillian’s level of difficulty when purchasing a home. It’s measured using four factors: cost, competition, scarcity, and economic instability (think: market volatility, unemployment, and interest rates).
The index updates on Thursdays after the third Saturday of each month, meaning the next update comes on June 20.
Diving into Davidson County
Let’s dig into the local data from April and compare it to previous months to gauge what June could bring based on trends. The county is sitting at nearly 72 on the difficulty index, which is down just slightly from this time last year. Still, that number puts Nashville in the “extremely tough conditions” category.
Cost and economic instability are the two factors that appear to play into this higher number the most. There’s a roughly $36,000 difference between the median income of Davidson County residents and what’s needed for a median-priced home in 2024. This coincides with a gradual rise in the median list price year over year.
Our pro tip? It’s a good idea to also factor in some of the local real estate predictions for the year.
For instance, Davidson County is experiencing a lower competition rate than surrounding counties like Williamson, Cheatham, Robertson, and Sumner. Interest rates can be changed in the future if they go down — which they’re expected to three to four times this year. With that, you’re looking at in increase in competition.
