SOUTH NASHVILLE, Tenn. (WTVF) — Many of you are waiting for that perfect moment to buy a home.
Interest rates in 2024 caused a lot of potential homebuyers to push pause on their plans.
So with that in mind, we asked the Greater Nashville Realtors Association your top questions about the 2025 real estate market.
We know rollercoaster mortgage rates discouraged homebuyers. According to Freddie Mac, the average 30-year fixed-rate mortgage ranged from 6.08% to 7.44% from November 2023 to November 2024.
However, in 2025, the Greater Nashville Realtors Association expects a shift in consumer confidence and people to be more accepting of a 6 to 7 percent mortgage rate.
"I think buyers are now starting to feel a lot more comfortable in that 6 to 7 and the main reason for that is they're able to budget more precisely," said Jack Gaughan, 2025 Greater Nashville Realtors Association President. "When they thought they were going to move all that time, it was hard for them to become accustomed to what that monthly budget will be, and now they're steady in that 6-7 now they can really know what they can and cannot afford."
In 2025, the real estate market will also be more balanced, according to some in the industry. Realtor.com suggests that inventory and demand should be in line with each other for the first time in about a decade.
However, while the supply may match the demand, the type of home you're looking for may still be hard to find.
"We are seeing a bit of a rise in new construction but oftentimes that comes with smaller lot sizes, or not the type of style they're used to or wanting. What we're still lacking is resell inventory. Homes that have been lived in for 2-3 years that people would dream of moving into are just not coming on the market as we would like, causing that cramp in the demand market," Gaughan said.
In 2024, there was more inventory in November than in any of the first six months of the year. There were 7,631 residential properties, 1,827 condominiums, 102 multi-family properties, and 1,815 farms, land, or lots for sale.
While it is difficult to predict what the entire year holds, remember there's a lot of pent-up demand, and delaying a purchase for another year could lead to missed opportunities.
"Talk to your realtor. Talk to your lender and make sure you have an understanding of what neighborhoods and markets are already seeing that competitiveness, and which ones are on the upswing because that's where you'll have the best chance to really thrive," Gaughan said.
With big businesses like Amazon and Oracle staffing up their new local offices in 2025, there is likely to be even more competition in Middle Tennessee.
Do you have more information about this story? You can email me at hannah.mcdonald@newschannel5.com.
This story by Aaron Cantrell reminds me of my first school in Dyersburg, TN. I was a student at Bruce School from Kindergarten to second grade until the school system was integrated. My parents graduated from this K-12 school in 1960 in one of the city's African American communities. After sitting empty for several years, part of the school was demolished while the rest was renovated and now serves as a community center for the Bruce community in Dyersburg. A local pastor is now trying to do something similar in the Cemetery community in Rutherford Co.
-Lelan Statom
