Nashville Home Prices Fall as Mortgage Rates Continue to Rise

The average median list price for single-family homes and townhouses in Nashville for October was $510,000, according to data compiled by Movoto Real Estate – down from the previous month’s average list prices of $549,000 in September and $569,553 in August.

Movoto’s data additionally reports that there were 2,920 single-family homes and townhouses on the market in October, which was up from 2,219 on the market in September.

The average median time that a single-family house or townhouse stayed on the market in October was 70 days compared to September’s average time of 51 days and August’s average time of 41 days, according to the data.

This data comes as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) is 7.16 percent for loans with a 20 percent down payment, according to CNBC. The same week one year ago, the rate was 3.24 percent, CNBC notes.

While Movoto reports that Nashville was overall a seller’s market in October – meaning that more people were looking to buy than there are homes available – the national housing market saw U.S. pending home sales fall 35 percent year over year during the four weeks ending October 23, according to Redfin.

“Until this month, the pullback in the housing market could be described as something of a return to pre-pandemic conditions before sub-3% mortgage rates ignited a homebuying frenzy in 2020 and 2021,” Redfin Deputy Chief Economist Taylor Marr said in a statement. “But now both mortgage purchase applications and pending sales are below 2018 levels. A four-year setback is a serious correction. With mortgage rates still elevated, we are in for further sales declines, but those should eventually bring price relief to those who need to move this winter.”

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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Nashville Neighborhood” by Andrew Jameson. CC BY-SA 3.0.