Build a Proper Real Estate Context



Build a proper context and gain a clear perspective.

Volatility in the financial markets can cause anxiety. It's understandable. Especially with the speed of change brought on by the Fed tackling inflation through the hikes in interest rates. But consider these 2 points in proper context across time.

It Remains a Seller's Market

Housing has cooled but equity-rich homeowners are still in the driver's seat. Why? Years of tighter mortgage lending standards and sharp home appreciation mean homeowners have less debt and substantial amounts of equity. Because of this, we are unlikely to see the domino effect of an over-leveraged environment and price instability like we experienced at the outset of the Global Financial Crisis over a decade ago. That will keep inventory constrained. Low inventory means buyers’ options will remain limited. Check out the insightful article (click link) penned by the senior economist at Zillow Group.

Yes, listings are up and sales have slowed. But the present Greater Nashville supply of three months of available inventory is still a seller’s market. It’s generally accepted that the definition of a seller’s market is any number below four months; a balanced market is four months to six months of inventory, and a buyer’s market is when the months of inventory are above six. Compare historically in Middle TN.





Will My House Still Sell in Today’s Market?

Buyer demand hasn’t disappeared, it’s just backed off from from the peak intensity we witnessed over the past two years. While "moderating" compared to the frenzy in 2020 and 2021, showing activity and pending sales are still beating pre-pandemic levels – and those pre-pandemic years were strong years for the housing market. This is particularly true in Middle TN where we have job growth and considerable corporate and individual migration. The key to selling in a changing market is to understand where the housing market is now. It’s not the same market we had last year or even earlier this year, but that doesn’t mean the opportunity to sell has passed.

Interesting to study Pending Sales in Middle TN over the past 10 years and the pattern of seasonality.



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I would be happy to discuss market conditions or review specifics about your home. billdiebenow@parksathome.com / 615-337-3660

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