NASHVILLE, Tenn. (WKRN) — Newly released data from Realtor.com shows housing prices in the greater Nashville area are dropping compared to last year.
Although the dip follows several years of quickly-rising home prices, the findings don’t come as a surprise to Re/Max Advantage relocation director Jeff Checko.
“It’s been a hurry up and slow down type of market over the last 12 months, and really it’s been like that since interest rates spiked,” Checko said. “So right now the obstacle is those interest rates, how do I make this affordable for me. But the advantage right now, the upside to purchasing right now that people need to understand is you have options. And you have the ability to go to a seller or a builder and say this is what I’m looking for. If you want to do business with me, these are the things that I require.”
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According to Realtor.com, housing list prices for the Nashville area are down by 6.2% compared to last year. That follows several years of pricing spikes, with housing prices still up 47.6% from 2019.
With the amount of people still moving to Nashville, Checko doesn’t expect housing prices to tank by any means. However, he says when and if interest rates do drop, he expects more competition to surface in the market from current owners looking to move.
“We still have 83% mortgage holders at a rate that’s less than 6%. So, when rates are sitting at over 7%, even though you might want to change your lifestyle, quality of life, the math gets more difficult,” Checko said.
As for Checko’s takeaway right now, if you’re looking to buy he says there are certainly advantages with the slight dips that we’re seeing. However, he reminds everyone that real estate is a long-term investment, and ebbs and flows are coming.
“Real estate always runs in cycles. And we’re going to be due for an uptick seemingly in short order here, I don’t know if that’s going to be in the third quarter of this year that activity’s really going to ramp up,” he said. “But rest assured, it’s coming. And when that happens, the problems, the challenges, the obstacles are going to be there when it comes to purchasing, they’re just going to look different.”
While prices are dipping in many places, Checko continues to see prices rise around Charlotte Park, as well as East Nashville where Oracle and the new Titans stadium are being constructed.
