The Tennessee Real Estate Market is on the rise for 2024. Home prices jumped by 8.3% over the past year to a median of $387,700 in April. Rising interest rates and economic uncertainties haven't slowed it down. Homes average 52 days on the market, showing how competitive it is.
Tennessee's appeal is growing thanks to affordability, strong job sectors like manufacturing and tourism, and tax-friendly policies. The job market is also thriving, with private sector jobs growing fast. The unemployment rate is a low 3.30%. For more details, visit Tennessee real estate trends.
Key Takeaways
- Median home sale price in Tennessee went up by 5.4% to $364,700 in January 2024.
- Home sales dropped slightly by 1.6%, with 28,000 homes available.
- Nashville's median home price rose to $440,000, a 5.0% increase.
- In Knoxville, home prices soared by 20.2% to $327,000.
- 15.3% of Tennessee homes sold were above the asking price.
- Over five years, Tennessee home values have skyrocketed by 63.3%.
- With prices climbing and homes scarce, 2024 looks good for sellers in Tennessee.
Current State of the Tennessee Real Estate Market
The real estate market in Tennessee is growing yet facing hurdles. Last January, the median home sale price in Tennessee increased to $364,700, showing a 5.4% rise. Cities like Nashville and Knoxville witnessed their median sale prices soar to $440,000 and $327,000, respectively.
However, the number of homes sold fell by 1.6% year-over-year to around 4,881. There's also only 4 months' supply of homes. Tennessee's median home price now stands at $364,700, marking a slight increase from last year.
Buyers are currently dealing with high interest rates. This has led to only 15.3% of homes selling for more than the asking price. The sale-to-list price ratio has slightly dropped to 97.4%.
It now takes one more day to sell a house compared to last year, totaling 69 days. The rental market is strong too, with rents in Nashville and Memphis at $1,761 and $1,082, respectively.
About 28K homes are on sale, reflecting the 4-month supply. Home values in Tennessee have increased by 63.3% over five years. This indicates a competitive market that requires smart strategies for buying and selling. The current housing analysis provides insights into its dynamic nature and resilience.
Trends in Tennessee Home Prices
The housing market in Tennessee is growing steadily. Recent trends show this quite clearly.
Recent Price Increases
In March 2024, Tennessee home prices went up by 6.5% from the year before. The median price reached $379,400. Despite an 11.0% drop in homes sold, to 7,219, demand is still strong.
The listings went up by 9.0%, with 33,199 homes up for sale. Out of these, 10,010 were new listings, a 3.8% increase. This shows changing trends in the state's housing market.
Comparison with Previous Years
Looking at the past five years, Tennessee's home values jumped by 63.3%. This shows strong economic performance and growing popularity. As of March 31, 2024, the average home value was $317,482, up 4.6%.
Though homes stayed on the market 5 days longer, to 62 days, they often went pending in about 24 days. This means buyers are still very interested.
Tennessee remains a top choice for homebuyers. The market is expected to grow, especially in Crossville and Sevierville. They predict home prices there will rise by 6.5% and 4.7% by March 2025. This signals a strong and steady real estate sector. Also, the supply remains stable at 3 months, showing the market can handle changes well.
Tennessee Property Sales and Inventory
The real estate market in Tennessee is seeing important trends. These are in both property sales and inventory levels. They offer clues about the market's current state.
Number of Homes Sold
The market for Tennessee property sales went down from 138,305 in 2021 to 119,350 in 2022. Yet, April 2024 saw a hopeful 11.3% rise in homes sold compared to last year. But, January 2024 experienced a 1.6% drop in sales year-over-year. This shows that sales can vary month by month.
Inventory Levels
Property inventory levels in Tennessee are tight, showing a seller's market. By March 31, 2024, 23,103 homes were on the market. This means there was an average supply of three months, which went up to four months by month's end. This short supply and high demand have made the market competitive. Sales are often above the listing prices.
New listings increased by 3.8% in March 2024 from the previous year. This highlights efforts to satisfy the need of homebuyers.
Regional Variations in Tennessee's Housing Market
The Tennessee housing market shows different trends across the state. We will look into specific cities, highlighting their unique market conditions.
Nashville
The Nashville housing market has seen steady growth in home prices. As of 2024, the median home price in Nashville is $440,000. This is a 5.0% increase from the year before. Nashville attracts many with its lively music scene, job opportunities, and cultural sites. It remains popular among buyers and investors, highlighting its importance in Tennessee's diverse housing market.
Knoxville
Knoxville has seen a sharp rise in home prices, unlike Nashville. The median sale price there is now $327,000, going up by 20.2% in the last year. Thanks to its beautiful views, the University of Tennessee, and a growing economy, Knoxville is becoming more popular. These factors make it a promising area for those looking to buy a home or invest in real estate.
Other parts of Tennessee like Crossville, Greeneville, and Sevierville are also seeing price changes. Each area responds differently to the economy, demand, and other factors. This shows the wide range of opportunities and challenges in the state's housing market.
Factors Influencing Tennessee's Real Estate Market
Tennessee's real estate market is driven by several factors. The economy and interest rates are main influences. These shape the buying and selling landscape in the state.
Economic Indicators
The economy affects Tennessee real estate a lot. This includes jobs and unemployment rates. See the impact here: Tennessee economy impact on real estate. A strong job market boosts housing demand. This has made home prices go up.
For example, home prices rose by 5.4% in early 2024 from the year before. Strong economics and attractive areas like Nashville played a part in this. In Nashville, many homes sold for more than their asking price. Memphis is also doing well, being both stable and affordable.
Interest Rates
The effect of interest rates on the property market is huge. High rates usually make buying hard. But high demand and low inventory have softened this issue. In late 2023, many Tennessee homes sold for more than their listed price. This shows people still want to buy homes.
Future outlooks are positive, like in Morristown. Home prices there might jump by 6.1% by the end of 2024. The mix of climbing home values, economic conditions, and interest rates keep Tennessee's market exciting for many people.
Buyer and Seller Market Dynamics in Tennessee
The real estate scene in Tennessee is clearly a seller's market. Homes are selling fast and often for more than their asking price. This is because many people want to buy homes but there aren't enough for sale. In March 2024, the median home price went up 6.5%, reaching $379,400. Meanwhile, the number of homes sold fell by 11.0% to 7,219. Even though homes stayed on the market 5 days longer, at 62 days, the demand didn't drop.
Signs of a Seller’s Market
In Tennessee, home prices keep going up, showing it's a seller's market. March 2024 saw a 3.8% increase in new listings, with 10,010 homes added. Yet, with 16.0% of homes selling above asking price in February 2024, buyers are in tight competition. The listings rose by 9.0%, but with just 3 months of supply, the market leans towards sellers.
Challenges for Buyers
Buyers in Tennessee are up against big challenges. With rising interest rates and home prices, it's tough for them. They must think of smart ways to compete, like avoiding bidding wars or looking for deals from builders. Different areas, like Knoxville and Crossville, see varied days on the market and home prices. This shows how much the market favors sellers.
Tennessee Real Estate Market Projections for 2024
The Tennessee real estate market is looking up for 2024. It's getting a boost from good economic health and stable interest rates. These elements will help shape the future of housing here.
Expected Rise in Home Prices
Home prices in Tennessee are set to go up in 2024. In January, the median home sale price jumped to $364,700. This is a 5.4% increase from last year. Over the past five years, home values have skyrocketed by 63.3%. Even though median prices slightly went up by 0.4% from last year, the outlook is still positive. This is due to high demand and not enough homes for sale.
Inventory and Sale Predictions
There's good news for Tennessee's housing inventory. More sellers are expected to enter the market. By January 2024, there were 28,756 homes available. This is hopeful for those looking to buy. Though home sales dipped by 1.6% in January, a bounce-back is expected.
The time homes spend on the market was 69 days. This is only a day longer than before. With mortgage rates getting steady, more homes are likely to be listed. Buying a home could become easier with expected costs below $2,200.
Realtor.com predicts a slight drop in sales growth for Tennessee in 2024. Yet, cities like Chattanooga and Knoxville might see price increases. With mortgage rates possibly settling at around 6.5%, we could see more building and selling. This means a strong market for both buyers and sellers.
Investment Opportunities in Tennessee Real Estate
The Tennessee real estate market is full of opportunities for investment. This is because the market has strong dynamics and constant demand. Let's look at some prime locations and tips to make the most of your investment.
Top Locations for Investment
Nashville is a top place for investment, with home prices above the state average. This shows how much people want to live there. A study highlighted on WSMV ranked Nashville among the best in the U.S. real estate markets. Knoxville also offers great potential, seeing a 26.6% jump in median home price to $335,483. Despite competition, Knoxville is on the National Association of Realtors' watch list for 2023. Clarksville is hot too, leading the nation's markets in early 2022 with 1,538 homes available in August 2023.
Chattanooga and Johnson City are also seeing growth. Chattanooga had a 4.2% uptick in homes for sale in August 2023. At the same time, Johnson City’s homes went up by 7.6% in value over a year, says Zillow. Memphis shines with high rental yields, attracting many investors. In Murfreesboro, home prices climbed to $432K, a 5.4% increase from last year, as Redfin reports. Hendersonville still holds potential despite a 9.09% drop in median sale price, now at $500K.
Tips for Investors
To do well in Tennessee's real estate, here are some real estate investing tips:
- Look into sales of new family homes in growing areas.
- Stay informed about market trends to benefit from price increases.
- Watch out for low offers from iBuyers in changing markets.
By following these tips, you can navigate Tennessee's real estate market and find profitable investments effectively.
Tennessee Rental Market Overview
The Tennessee rental market is thriving, with lots of chances for both landlords and tenants. As buying a home gets harder and more expensive, more people are renting. This increases demand for rental homes.
Current Rental Prices
Rental costs in Tennessee can vary a lot based on where you are. In Nashville, the average monthly rent is $1,761. On the other hand, Memphis offers more budget-friendly options, with an average rent of $1,082 per month. The wide range in prices shows the state's varied economy and living conditions.
Demand for Rental Properties
Tennessee's demand for rental homes is strong. Rising home prices push many people to rent instead. For example, Knoxville saw a 10.0% increase in available homes for sale in just one month, in February 2024. The median home price there hit $425,000. This makes rentals a great option for investors.
Knoxville also had a 1.2% increase in home prices compared to last year, as of February 2024. In April 2023, the average home cost $399,900, which is 17.7% more than the year before. This highlights the ongoing interest in renting. For more info, check out Knoxville real estate trends.
Conclusion
The Tennessee real estate market has grown a lot. The median home sale price went up 5.4%, from $345,700 to $364,700 in January. Even though there was a slight drop in home sales, the market is still strong. This is because of steady demand and a strong economy. The private sector grew 5.9% in January 2024, faster than the national growth.
Nashville and Knoxville's home prices have increased a lot. Nashville's median price is $440,000 and Knoxville's is $327,000. These numbers show how different areas in the state are growing. High interest rates have made the market competitive, with 15.3% of homes selling for more than the asking price. With only 28,000 homes for sale and a 4-month supply, it's definitely a seller's market.
There are many chances to invest in Tennessee's housing market. Its diverse economy and growing population keep the demand high. Interest rates might stabilize and more homes might be listed as 2024 goes on. Also, renting offers good opportunities. In Nashville, the average rent is $1,761, and in Memphis, it's $1,082. With a reasonable cost of living and strong economic signs, Tennessee is a great place for real estate buyers and investors.
FAQ
What is the current median selling price of homes in Tennessee?
As of April 2024, homes in Tennessee have a median selling price of $387,700. This shows an 8.3% increase from the previous year.
How long do homes stay on the market in Tennessee?
Homes in Tennessee typically stay on the market for around 52 days.
What are the recent trends in Tennessee home prices?
There's been a steady increase in home prices in Tennessee. By March 2024, the median home price rose by 6.5%, reaching $379,400.
How do Tennessee home prices compare to previous years?
Tennessee home prices have significantly increased over time. Over the last five years, there's been a 63.3% increase in home values.
What is the current state of property sales and inventory in Tennessee?
In April 2024, Tennessee saw an 11.3% increase in homes sold compared to the previous year. However, in January of the same year, there was a small drop of 1.6% in homes sold. The state has only 4 months of supply available, showing it's a seller's market.
Are there regional variations in housing market trends within Tennessee?
Yes, housing market trends vary by region in Tennessee. For example, in Nashville, the median home price is $440,000 with a 5.0% increase from the last year. Knoxville, on the other hand, has seen a 20.2% increase in home prices, with a median sale price of $327,000.
What economic indicators are influencing the Tennessee real estate market?
The real estate market in Tennessee is boosted by fast-growing private sector employment and a stable unemployment rate of 3.30%. Interest rates also have a key impact on the market.
Why is the Tennessee housing market considered a seller's market?
With homes selling quickly and often above listing price, Tennessee's market shows strong demand amid limited inventory, making it a seller's market.
What are the market projections for Tennessee real estate in 2024?
In 2024, home prices in Tennessee are expected to keep rising due to ongoing supply and demand issues. However, more listings and stable interest rates are anticipated.
What are some top locations for real estate investment in Tennessee?
For real estate investment in Tennessee, Crossville, Knoxville, and Jackson are top locations. They are expected to see noteworthy price growth in the future.
What are the current rental prices across Tennessee?
Rental prices in Tennessee differ by area. Nashville renters pay an average of $1,761 monthly. In Memphis, the average rent is about $1,082.
Is there a high demand for rental properties in Tennessee?
Yes, the demand for rental properties in Tennessee is high. This is due to increasing home prices and homeownership challenges, making it an attractive market for rental real estate investors.
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