Middle Tennessee market slowing down?

9 Replies

Hey guys! I'm wondering if any of you in the Middle Tennessee area who have done any buying or selling in the past few months have seen any actual signs of the market slowing down here?


I ask because I put my latest flip on the market a little over a month ago and we haven't had as many showings as I thought we would. I'm guessing some of the explanation is that it's at a higher price point ($600k-ish) But still, not as many showings as we were expecting. According to the comps, we're priced below what similar properties have sold for this year and lots below other similar properties currently on the market.

Any thoughts? Any one else experiencing this?

This is more anecdotal rather than scientific so take with large grain of salt: I am currently trying to buy a SFR for myself in Nashville (will be a future rental after I occupy) well below price point you are trying to flip at. However, I am seeing in my weekly or daily updates more price drops on homes of varying prices (especially above $400k) than when I started searching. I have not been searching long (probably 2mo or less) but noticed this happening within last 2-3 weeks.

No.

I saw the actual numbers at our REIN meeting last night - still strong and active.

Most of the time homes above $400K take longer - typical executive family homes and they are settled in to the school year and moving toward the holidays.

I’d say NO unless your selling a farm. Condominiums could be a bit over priced but not far off from last year. Supply is down from last year so that’s a plus for a seller. 

@Marcos Flores

Yes and no.

Yes-in some areas, especially at certain price points and certain houses. Price drops are happening mostly bc people in Nashville right now think they can get $1m for their $100k house. 

No-in affordable areas at certain price points. In fact affordable homes are in the highest demand ever with painfully limited supply. 

@Marcos Flores

In August, 43.7% of all home sales in Nashville were under 300k. The median home price is 316k. Homes 600k and over were only 10.4% of total sales for August.  You're operating on a different price point than where a decent amount of activity is taking place (this is from Chandler Reports). Even at the lower price points, buyers are becoming pickier. Sellers are having to do more remediation than before, days on market has continued to go up.  

To the comments above, I'm going to disagree. Looking over growth since 2011 (this is available at Nashville Realtors Market Data) there has been a definite deceleration in growth. So far in 2019, there has not been any metrics of double digit YoY growth in median home prices/closings or condo closings. That is the first time since 2011 that there hasn't been double YoY growth in the above metrics. 


Our properties are still moving pretty fast, but there is always a little bit of variance! Also, a property with unusual characteristics might sell a little slower. We had one that sat for awhile because it was right across from a graveyard, so you never know! I always enjoy talking selling strategies too, so feel free to DM me!