Summer 2023 Housing Market Forecast: What to Expect When Buying a Home in Nashville

From the world-renowned music scene to the diversified economy offering job opportunities in countless industries, Nashville offers residents a lively and unique atmosphere — ideal for growing families and single young professionals.

For these reasons and others, the Music City has seen an influx of eager home buyers in the last decade.

If you’re among the many people ready to plant roots in Nashville, you must first research the local housing market.

Learn everything you need to know before you buy a home in Nashville from the locals at HND Realty LLC.

Nashville Housing Market Trends to Watch Out For

Housing Market Summer 2023
  • As of March 2023, the median sales price of a single-family home in Nashville is $465,000. That’s up $15,000 since January 2023.
  • In May 2023, 30-year mortgage rates rose to 7.14% (this number is subject to change).
  • On average, homes stay on the market for 54 days before selling.
  • The average home closing cost is 1.4% across Tennessee so far in 2023.

While some of the above trends might be startling to potential home buyers, these numbers are more of a reflection of inflation across the U.S., not Nashville. In fact, Nashville’s housing market is doing much better than most major cities nationwide.

According to the U.S. Housing Market Index, Nashville has the 12th strongest housing market in the nation.

Nashville Housing Market Predictions

Metropolitan Nashville (including areas like Old Hickory, Hermitage, Dickson, and Antioch) is expected to see a 0.7% increase in home values by July 31, 2023 and a 5.5% increase by April 30, 2024, according to Norda Real Estate Investments.

While these numbers are subject to change, predictions show that buying a home in Nashville is still a good investment — despite growing interest rates and inflation.

But why exactly is Nashville’s housing market still relatively healthy when most of the country’s major markets are struggling?

The answer lies in Nashville’s booming economy.

Over the last year, Nashville’s job market has increased by 1.8%. This growth gives real estate buyers more purchasing power, thus keeping the local housing market stable. And with job growth predicted to rise by 41.6% over the next 10 years, Nashville’s housing market prosperity can be expected to continue.

Additionally, Nashville’s population has grown 1.62% since 2022 — a trend that doesn’t seem to be slowing anytime soon. This population growth has led to an increased need for housing, thus helping the housing market in Nashville to remain strong.

Nashville Housing Market FAQ

What are common mistakes to avoid when you buy a home in Nashville?

  • Overextending yourself financially with your down payment
  • Looking for a home before applying for a mortgage
  • Choosing the wrong type of mortgage
  • Skipping the home inspection
  • Letting a “bad real estate market” influence your decision (all markets are cyclical)

What are the property taxes like for those who buy a home in Nashville?

Tennessee is known for its attractive state tax laws, but that doesn’t mean you can completely avoid paying taxes when purchasing a home. When you buy a home in Tennessee, you will pay 2.6% of your home’s assessed value in taxes.

What to expect from a home inspection when you buy a home in Nashville?

A standard inspection report in Nashville will include reviewing your home’s:

  • Heating system
  • Air conditioning system
  • Interior plumbing
  • Electrical system
  • Roof and attic
  • Walls, ceilings, floors, windows, and doors
  • Foundation, basement (if you have one), and any other visible structures

Buy a Home in Nashville With HND Realty LLC

HND Realty LLC is a real estate agency and developer with over 30 years of experience serving the greater Nashville region.

With multiple properties for sale in Nashville, our team of experts is ready to help you find your dream home.

Contact us today to learn more about our personalized, straightforward home-buying process.

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