Is the Nashville real estate market crashing?

Nashville housing market 2020

Nashville Real Estate Market – September 2020


Today in this video, we’re going to talk about, again, the Nashville real estate market, is the sky falling already or what? Check it out.


Hi, I’m Rhonda Burgess and I’m a real estate broker here in Nashville, Tennessee. And I am a native Nashvillian and my firm is Southern Living Realty Partners. So I know I just did a video not too long ago talking about, you know, what’s going on in the real estate market. But, you know, I keep having so many people ask me, they want to know what’s going on. And this, too, I think will help explain some of my reactions to to some of the requests I get from people who are looking for a home here in the Nashville, Tennessee area.


So let me go over these numbers. These numbers are strictly for September of 2020. We just finished. Today is October 4th. So this is for September. Let me put my glasses on so I can see, OK, right now that we have 2046 active listings in the Nashville, Tennessee area, and this is just Nashville Davidson County. I’m not looking at the other counties. I’m not looking at anything. I’m just looking at the Nashville real estate market.


So the median, we have 2046 active listings currently on the market. The median square feet of those listings is 1880 square feet. It is a three bedroom, two and a half bath home on average right now. The current list, the median list price per square foot is $246 dollars a square foot. The median listing price of those active listings is $426,900. The median home was also built in 2009. And currently we’re looking at 32 days on the market.

Nashville real estate market
Nashville housing market values increasing

That’s the median of all 2046 listings. I’m not discriminating. The lowest priced one is at $92,000 for a one bedroom condo. And the most expensive one is listed at $8,749,000. OK, so now let’s go to the under contract so you can see what’s going on right now. Currently we have 2604 properties under contract. They’re either under contract and still showing or under contract pending, meaning they are not showing.


Excuse me. So for these 2604 listings that are currently under contract, the median square feet is 1834. Again, it is a three bedroom, two and a half bath home.


Right now they’re under contract at approximately $197 per square foot. The median price of these homes under contract is $361,298 dollars, and they have been on the market – they were on the market for an average a median of 10 days before they went under contract. So, again, it’s about the same square foot, 1834 square feet, three bedrooms, two and a half baths at $197 a square foot.


And that the median price of those under contract is $361,298. And they got a contract in approximately 10 days.


Now, let’s get down to the closed in the Nashville real estate market, the ones that actually closed and sold in the month of September. There were 1379 listings that closed in September of 2020. The median square footage was 1824. Again, it was a three bedroom, two and a half bath. They were listed at approximately $190 per square foot and they sold for $188 per square foot. The median list price was $335,000 thousand and the sales price was $330,000.

Nashville housing market

So they sold for very close to their to their list price. And of the homes that sold in September, they averaged only 5 days on the market and they took another 35 days on average to close.

Is the Nashville housing market crashing?

So still we’re moving very, very fast with only 5 days on the market and we’re still roughly at $190 per square foot as far as what homes are selling for. I want to go over these September numbers with you so you can see what’s going on here locally in Nashville because, you know, everywhere is different, everywhere is different. It depends on, you know, where you’re looking at as far as the Nashville real estate market is concerned.


Like I said, they sold for an average about $190 per square foot. In September, the ones that are pending that are under contract are currently under contract at $197 per square foot.


The ones that are listed available are priced, are listed at $246 per square foot. So the price per square foot is increasing. We are still averaging 10 days or less. To close, I mean, from the time that they go on the market to when they go under contract, we’re still averaging 10 days. We’re still seeing a lot of multiple offer situations, especially if it’s priced under $450k.


You will get several offers, so it’s still a very competitive market here in Nashville. Great for sellers, not so good for buyers. I also want to go over this so that people will understand, let me say this, I appreciate each and every one of you who call me from our videos who call me, want me to help you. You’re relocating the area. You’re thinking about relocating to the area. But one reason why I want to go over these numbers, so I want you to understand what’s going on.


The pickings are truly slim, very, very, very slim under $200,000. Also under $200,000, you’re going to be in a dogfight, you’re going to be in a dogfight. The big players are back in the game, Opendoor is back. Opendoor actually did an initial offering the other day. They’re going public. And so they’re here buying up everything. Zillow is back, everybody’s back.


So for those of you looking to purchase a home here in Nashville and you’re trying to be under $350k – $400k. It is a hard road to go. It’s a very hard road to go. I would suggest strongly you’re going to have to consider a townhouse or condo. Even if that’s available, I’m telling you, it’s a dogfight, straight up, bare knuckle dog fight under 300000 here in Nashville.


I don’t know if it’s going to calm down anytime soon. I’m just telling you what the numbers are and we’re still moving. A house is still selling in less than two weeks and you’re looking at essentially $200 dollars a square foot. I mean, this is crazy, but this is what it is. You know, I don’t mean to I never want to come off like I don’t appreciate any phone call that I get. But when you call – let me go there.

Priced out of the Nashville housing market!

You call me and you say, “well, I’m ready to move as soon as you know, you know, you can find me something for $150k”. You ain’t moving Boo. You aint moving. You know what? We have so much business going on that you need to look in other parts of the state. I had a man call me the other day, I told him, you may want to look at Memphis, the Memphis area, you may want to find you a realtor out of Memphis who handles West Tennessee.


Because I know their price points are lower than ours now, you know. He was asking me about Chattanooga. Chattanooga’s kind of pricey, depending on where you’re at, especially a lot of the areas that are being revitalized.


So and to me, Knoxville was already out of his price range, you know. But that’s why I told him, you know, you may want to look at West Tennessee. You’re going to have to come up with some other options if you have a limited budget or your budget does not get close to what the median price here is in the Nashville real estate market. I’m sorry to say it, but you have been priced out of the market for the most part, and you just got to look at different options.


You may need to do a one bedroom condo or something like that, or you just may need to look at west Tennessee or somewhere, not the suburbs of Nashville, but the outer suburbs of Nashville. You may need to be an hour and a half to two hours from Nashville to find something, you know, in your price range. You know, compared to what Nashville used to be, the Nashville real estate market is very expensive. There’s just no other way to say it.


I know it’s hot, it’s popular. We have no income tax. You know, our property taxes are not astronomical, nothing like that. And so everybody likes it. And so there’s just. You know, a lot of people have the money to pay the higher prices, and that’s just what the Nashville real estate market is demanding right now unfortunately.


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