Quarter 1 - 2025 Report
Hello, Quarter 2 of 2025!
This time of year is always full of highs and lows here in Tennessee, from balmy 80-degree days to 30-degree windchills and severe storms. Last week, many Nashvillians spent the night taking cover in bathrooms, basements, and closets during a series of tornado and flood warnings that left some with flooded yards and toppled trees. (We were lucky enough to make it through with just a downed tree branch.)
These wild weather swings aren’t a new phenomenon. Known as the "six little winters,” farmers’ almanacs have tracked the cycle of glorious spring sunshine and frigid storms since the late 1700s. We’ve just made it through the second little winter, also known as the Redbud Winter.
Residential real estate has also seen some spring ups and downs. In Quarter 1, Middle Tennessee experienced a decrease in the volume of home sales when compared to the same time last year. Meanwhile, the median selling price of single-family homes rose by 1.6%, while condos fell by 5.8%.
Buyers are still feeling squeezed by 30-year mortgage interest of around 6.5%, down from 7% in January 2025. While the falling rates have offered some relief, those high median home prices are still a challenge for most house hunters.
It isn’t all doom and gloom, however. Inventory is up 31% from the same time last year, giving buyers more options and negotiating power.
Gallatin saw the most home closings for Quarter 1. It seems that homebuyers chasing more bang for their buck are looking at homes further away from Nashville. A manageable 35-45 minute drive from Downtown Nashville, Gallatin makes a lot of sense for buyers looking for their affordable dream home.
So far in 2025, the greater Nashville area has seen a 1.28% increase in population. While this is down from its peak of 1.62% in 2023, housing is still in high demand.
Nashville Real Estate Rockstars congratulates all our clients for their real estate success and we look forward to helping more clients move forward with their real estate goals in 2025.
Now let’s take an in-depth look at Nashville’s real estate market.