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September 28, 2017

State of the Nashville Economic Market – September 2017

The Nashville Economic Market consists of a 10-county region including Cheatham, Dickson, Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson, and Wilson.  Nashville has been the recipient of numerous accolades over the last many years, and everyone concedes it is one of the hottest markets in the US.  We see strength in the market with indicators like a 9% increase in Average Sales Price over last year (+10% Median Price), a 3% increase in Sales Volume, and a whopping 10% increase in new construction closed YoY.  The number of Expired Listings is also down 10% over this time last year.

In general, the Nashville Real Estate Market is very strong.  However, we have to remember that home values cannot be generalized… and websites don't understand the nuances involved in pricing homes for sale.  If we drill down a bit further and examine price bands, we realize that the luxury market is a bit weaker.

Absorption Rates

Here is a breakdown of absorption rates by price band for the 10-county region.  5.5-6 months of supply is considered a balanced market; less than 5.5 months is a seller's market, and over 6 months is a buyer's market.

Price Band Active Sold Avg Sales/Mo Supply(Months)
Under $100K 119 1,422 118.50 1.00
$100-200K 806 10,549 879.08 0.92
$200-300K 1,599 12,018 1001.50 1.60
$300-400K 1,553 6,788 565.67 2.75
$400-500K 1,015 3,592 299.33 3.39
$500-600K 559 1,651 137.58 4.06
$600-700K 371 1,029 85.75 4.33
$700-800K 257 540 45.00 5.71
$800-900K 191 355 29.58 6.46
$900K-1M 153 235 19.58 7.81
$1-1.25M 176 246 20.50 8.59
$1.25-1.5M 160 205 17.08 9.37
$1.5-1.75M 60 94 7.83 7.66
$1.75-2M 54 76 6.33 8.53
$2-2.5M 67 51 4.25 15.76
$2.5-3M 34 10 0.83 40.80
$3-4M 37 18 1.50 24.67
$4-5M 12 1 0.08 144.00
Over $5M 20 7 0.58 34.29

If you'd like to see additional statistics and search through the homes that have closed in the last 30 days, as well as those that have hit the market in the last 30 days, visit our Market Report here.  We are also happy to provide you with a more detailed report specific to your home to assist you in determining a potential sales price.  Please let us know how we can be of service to you, and what other data you'd like for us to analyze on your behalf.

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