Inventory is LOW in the Nashville housing market- What does that mean for you?
Inventory is the current supply of homes offered for sale relative to the number of homes being purchased. If on average, buyers buy around 1,000 homes per month & there are 4,000 homes available, we would say there is 4 months of inventory (aka number of active listings divided by number of sales in a given time frame).
In the real estate industry, a “balanced market” is around six months of inventory (or homes) available. A seller’s market is when we have anything less than six months of inventory (and a buyer’s market would be when we have more than six months of inventory). Over the last couple years, we have been hovering around three months of inventory in Nashville and the surrounding areas. This year is something different all together.
Right now, we only have 1.4 months of inventory available.
Over the last six months, the landscape of the market has significantly changed. In fact, we’ve seen a more dramatic change in the market in the last three months than we have in the last three years! We’re seeing market trends that we’ve never seen before. Because of the extremely high demand and low inventory, buyers are waiving appraisal contingencies, offering well over asking and presenting cash offers at all price points.
So, how does this affect you? Well, if you’ve ever given any consideration to selling your home, now is the time. Yes, it’s been said before, but as seen in the below graphs, the inventory has significantly dipped and buyers are eager to buy. Now more than ever, you need a professional by your side to help navigate the industry and help you as you transition between selling your current home and finding a new one.
