Are These Signs Of A Slowdown In The Nashville Market?
While prices were up significantly over last year, other signs might indicate that the Nashville Real Estate Market is turning the tide.
First, let’s take a look at the year over year statistics.
Sales volume is up 1.3% over the same month last year. While this is still positive, it’s no where near the increases in volume we have seen in the last year. With inventory heading down and builders not able to make up the difference, this stat had to give at some point.
What we don’t know if this is an anomaly or the start of a new trend in our market. Because we are in the busy season for real estate, I lean towards the latter.
Inventory is down 10.7% over the same month last year. This stat hasn’t changed much recently.
Prices are up an even 10%. At this time last year, the median sales price was $250,000 and today it is $275,000. This is consistent to what we've seen over the last year.
Here’s the big surprise.
I went back and compared the March and April sales volume over the last five years. And what I found was a pattern that shows more homes selling in April vs. March in the same year, except for 2017.
This year, we sold 95 fewer properties in April as compared to March.
This is a significant break in our pattern. It’s possible that people were trying to get a jump start on the selling season. However, I expect this is a sign that the market is changing.
And that’s a good thing because it is not healthy to keep growing at this rate long-term.
Here’s what the President of the Greater Nashville Realtors, Scott Troxel, had to say about it, “The increase in year-over-year home sales for April was slightly lower than the gains we’ve seen the in the past several months. This dip is not a decline in the desire for homeownership. In fact, it’s the market catching up with itself. Achieving double-digit gains each month compared to the prior year in nearly impossible to sustain without a matching growth in inventory. Smaller, steady gains are more desirable and contribute to a long-term healthier market.”
Do you think this is a market correction? Hit reply and let me know your thoughts.
The Daily Deal in Nashville is this All-Brick home in a great location in Hendersonville and selling for less than $290,000.