Headline: Nashville Housing Market Holds Strong Amid National Correction

Nashville’s housing market is still drawing attention, even as the national real estate picture enters a phase of cautious optimism and gradual correction. According to Redfin, Nashville’s median home price in August 2025 jumped 6.6% year-over-year to $485,000, which is notably above the national pace that J.P. Morgan Research estimates at just 3% growth for the year. Yet this does not mean buyers are rushing in—properties in Music City are taking longer to sell, lingering on the market an average of 68 days compared to 56 days last year. The average home sells for about 3% below its list price, with the hottest listings going pending in just over a month. Most buyers are locals looking to stick within metro Nashville, but some interest from Los Angeles, Atlanta, and Chicago continues to add a little extra sizzle to the melting pot.

Despite the price uptick, the mood nationally is more subdued. Fannie Mae predicts only a 3.8% increase in home prices across the country, and inventory is on the rise—active listings were up 21% year-over-year by September. That’s led to what FinancialContent describes as a balancing act, with 490,000 more sellers than buyers nationally creating fertile ground for negotiation. High mortgage rates are still a thorn in everyone’s side; 30-year fixed loans are holding steady around 6.7%, cooling demand and pricing out would-be buyers. That pinch is being felt by builders, too. Homes.com reports single-family housing starts sank to a 13-month low in August, as supply of unsold homes and affordability constraints put developers on defense. Building permits are down, homebuilder sentiment remains bearish, and most are focused on completing existing projects rather than breaking ground on new ones.

Locally, Nashville has managed to hold its own against these headwinds, but there are clouds on the horizon. If market corrections continue to spread from other Sun Belt cities—like the 3.6% and 3.8% drops recently seen in Tampa and Austin—Nashville may see pressure on both prices and inventory. That said, most experts do not see an imminent crash; they anticipate orderly correction and stabilization, with Nashville’s strong fundamentals and relative affordability helping it weather the storm. Redfin and analyst consensus agree: buyers searching for deals will find more room to negotiate, while sellers should expect a more patient market.

Looking to the year ahead, some optimism is brewing. As the Federal Reserve begins trimming its key rate, borrowing costs should ease, giving sidelined buyers and cautious builders a chance to re-enter the fray. According to Oxford Economics, construction activity may pick up in 2026, setting the stage for a more vibrant Nashville housing scene. Until then, watch for more inventory, slightly less frantic bidding wars, and a much healthier market dynamic.

That wraps up your Nashville real estate and housing market update. Thanks for tuning in—join me next week for more! This has been a Quiet Please production, and for more, check out Quiet Please Dot A I..

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Episode Transcript

Speaker 1 (00:00):
Nashville's housing market is still drawing attention even as the
national real estate picture enters a phase of cautious optimism
and gradual correction. According to Redfinn, Nashville's median home price
in August twenty twenty five jumped six point six per
cent year over year to four hundred eighty five thousand dollars,
which is notably above the national pace that JP Morgan

(00:20):
Research estimates at just three percent growth for the year.
Yet this does not mean buyers are rushing in. Properties
in Music City are taking longer to sell, lingering on
the market an average of sixty eight days compared to
fifty six days last year. The average home sells for
about three per cent below its list price, with the
hottest listings going pending in just over a month. Most
buyers are locals looking to stick within metro Nashville, but

(00:43):
some interest from Los Angeles, Atlanta, and Chicago continues to
add a little extra sizzle to the melting pot. Despite
the price uptick, the mood nationally is more subdued. Fanny
May predicts only a three point eight per cent increase
in home prices across the country, and inventory is on
the rise. Active listings were up twenty one percent year
over year by September. That's leg to what Financial Content

(01:06):
describes as a balancing act, with four hundred and ninety
thousand more sellers than buyers nationally, creating fertile ground for negotiation.
High mortgage rates are still a thorn in every one side.
Thirty year fixed loans are holding study around six point
seven percent, cooling demand and pricing out would be buyers.
That pinch is being felt by builders too. Homes dot

(01:27):
Com reports single family housing starts sank to a thirteen
month low in August as supply of unsold homes and
affordability constraints put developers on defense. Building permits are down,
home builder sentiment remains bearish, and most are focused on
completing existing projects rather than breaking ground on new ones. Locally,
Nashville has managed to hold its own against these headwinds,

(01:48):
but there are clouds on the horizon. If market corrections
continue to spread from other Sun Belt cities like the
three point six percent and three point eight percent drops
recently seen in Tampa and Austin, Nashville may see pressure
on both Price is an inventory that's said most experts
do not see an imminent crash, They anticipate orderly correction
and stabilization, with Nashville's strong fundamentals and relative affordability helping

(02:10):
at weather the store, Redfinn and analyst Consensus agree buyer
searching for deals will find more room to negotiate, while
sellers should expect a more patient market. Looking to the
year ahead, some optimism is ruing. As the Federal Reserve
begins trimming its key rate. Borrowing costs should ease, giving
sidelined buyers and cautious builders a chance to re enter
the fray. According to Oxford Economics, construction activity may pick

(02:34):
up in twenty twenty six, setting the stage for a
more vibrant Nashville housing scene. Until then, watch for more inventory,
slightly less frantic bidding wars, and a much healthier market dynamic.
That wraps up your Nashville real estate and housing market update.
Thanks for tuning in Join me next week for more.
This has been apply at please production and for more
check out Quiet Please dot ai