Realtor.com - Financial Outlook for Residential Real Estate Markets

Middle TN Inventory Remains Tight
Available Inventory vs Sold
2018 - 2022



With all eyes focused on the rise of interest rates to slow the rate of inflation, how does this affect the residential real estate market and specifically the local Middle TN environment? Last week I pointed to the downturn in home sales and a rise in active inventory. Yet from a historical perspective we are experiencing an ongoing shortage of available properties. There remains a big gap between the small number of homes available for sale and the overwhelming number of buyers looking to make a purchase.





Sellers' perspective:
  • Price appreciation is decelerating. 
    • It continues to appreciate, but at a slower pace.
    • “We do still expect home prices to cool, but we’re starting at a higher price point,” says Realtor.com Chief Economist Danielle Hale.
Buyers' perspective:
  • More homes to choose from in our local market. 
    • Up 21.7% from prior month, and 18.2% over same time last year. 
    • But keep in mind, Middle TN has approx 1/3 the available inventory that it had before the pandemic.
      • “The number of homes for sale right now is so low that it’s creating these ultracompetitive conditions for buyers, which are so challenging,” says Hale.
      • “More homes for sale will help bring back more balance and sanity to the market."
  • Higher interest rates. 
    • Trade off…Yes there is greater inventory but with a challenge to afford a similarly priced home from earlier this year due to a higher interest rate and monthly mortgage.
    • All-cash buyers are sitting pretty.

More homes for sale will eventually bring more balance to the housing market, cooling the ultra-fast pace of home sales we’ve seen over the last few years. We have only just started to see a pull back with homes priced too aggressively heading into this transition period. Check out the article, Realtor.com revisits 2022 housing forecast.

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