Nashville Market Update - February 2025

The Nashville housing market continues to evolve, with rising home prices, growing inventory, and longer days on market compared to previous years. While sellers are still seeing price appreciation, the market is shifting toward a more balanced environment where buyers have more options.

 Key Market Trends

• Home prices are still climbing, but growth is uneven. The median sale price for February was $592,900, up 7.8% year-over-year from $550,000 in February 2024 and $545,000 in February 2023.
  • Prices have fluctuated over the past year, with a peak in May 2023 at $630,000, followed by dips below $600K in late summer and fall.
  • Prices climbed again in early 2024, hitting $619,950 in March, before stabilizing in the high $500Ks to low $600Ks in recent months.
• Inventory is rising, giving buyers more options.  Months of supply has grown to 5.42 months, up from 4.24 in February 2024 and 3.94 in February 2023.
  • Over the past two years, inventory hit a low of 2.86 months in March 2023 and steadily increased, peaking at 6.6 months in January 2025 before dipping slightly this month.
  • This trend suggests the market is transitioning from a strong seller’s market to a more balanced environment.
• Homes are taking longer to sell. 
  • The average days on market increased 14.7% year-over-year, from 34 days in February 2024 to 39 days in February 2025.
  • However, this is still well below the historical peak of 45+ days in late 2023, meaning some well-priced homes are still moving quickly.
• Fewer new listings, but inventory continues to grow.
  • New listings dropped 20.6% year-over-year, meaning fewer homeowners are putting their homes on the market.
  • However, total inventory increased 10.9%, showing that homes are staying on the market longer rather than selling immediately.

What This Means for Buyers & Sellers

For buyers, the increase in inventory means more choices, and homes are sitting longer, which opens the door for negotiation. However, prices are still trending upward overall, meaning waiting too long could result in higher costs down the line.

For sellers, pricing and presentation matter more than ever. Homes are still selling, but buyers have more options, meaning overpriced listings are likely to sit. The rapid, multiple-offer situations we saw in previous years are less common now, but well-priced homes in desirable areas are still moving.

It’s important to remember that this data represents Nashville as a whole, but market conditions vary greatly by neighborhood, price point, and property type. Some areas may still be highly competitive, while others are slowing down. That’s why working with an agent who knows the trends in your specific market is key.

If you're thinking about buying or selling, let’s connect and strategize the best approach for your goals.