Quarter 2 - 2025 Report
Let’s look back at Quarter 2 of 2025.
As the weather heats up across the USA and with the July Fourth holiday behind us, the fireworks remind us of the well-known saying, “What goes up must come down.” The twelve-plus years of up-up-up, gravity-defying home prices fueled by historic low interest rates and a buying frenzy, have now brought us to this point of…. slowing…. easing…… and market correcting.
Still, many home sellers and home buyers are not excited.
For current homeowners thinking of selling to either upsize, downsize, or relocate for work or family, it's an especially hard decision. Just two days ago, I spoke with one such homeowner who told me that they don’t feel they can sell their current home, even though they’d really like to move into a larger house. The reason: their current mortgage interest rate is in the mid 2%, but a new 30-year fixed-rate home loan would have a 6.82% interest rate. That’s a big increase in their monthly mortgage payment and a bitter pill to swallow for a home seller who will also be a home buyer. For homeowners like the one I spoke to, staying put is often their best bet.
Despite the challenges, many can’t put off selling their homes for a variety of reasons, and this has led to a 28% increase in inventory from the same period last year.
While increased inventory is often a boon for house hunters, buyers are still not sighing with relief. Although price reductions are becoming more common, last year home prices still rose 5.3% across greater Nashville, with Davidson County up 8.2%. With interest rates above 6%, many buyers are still priced out of the market.
However, a few positives are brightening the outlook for homebuyers. More inventory means more choice, and, with homes sitting on the market for longer, buyers don’t have the pressure to make snap decisions like they did during the peak of the pandemic buying frenzy. Plus, for condo buyers across greater Nashville, the median price decreased 1%, making this a good time to buy a condo.
So, for savvy home buyers and home sellers with time on their side, the ups and downs of the market can work to their benefit.