Quarter 4 - 2025 Report
Hello, New Year 2026!
2026 may have started with unusually warm weather, but temperatures are dropping as we head further into the new year. Nashville’s real estate market also appears to be cooling down, with signs pointing toward a normalizing, more balanced market.
The sale price for single-family residences in Greater Nashville, once defying gravity, now seems to be coming back to earth, much to the relief of homebuyers still wrestling with high interest rates. Home shoppers looking for condos also got good news, with the Quarter 4 median condo price decreasing by 5.2% across Greater Nashville to $331,867. Meanwhile, the median price for single-family homes remained steady at $508,468, an increase of less than 1%.
In the fourth quarter of 2025, the typical interest rate for a 30-year fixed-rate mortgage was around 6.19%. When talking with current homeowners who are considering selling their home and buying another, high interest rates are the most common reason for hesitation. They feel “locked in” if their current home was purchased during the artificially low interest rates of 2015 to 2022, and are reluctant to take on a new, more expensive mortgage.
Now, homesellers are seeing a slower, stagnating market and less buyer interest in their homes. Realtors are reporting very low turnouts at their clients' open houses, with some not receiving any visitors at all. But it’s not that homes aren’t selling; it’s just taking a whole lot longer.
With inventory up by 13%, median home price and total home sales remaining largely the same as they were last year, and the all-important days-on-market now at around 62 days, all signs indicate a balanced, normal market and smoother sailing than the extreme seller's market and sky-high prices of the last few years.
While the record-smashing migration of the pandemic years has lessened, Nashville still attracts a steady influx of over 78 people each day, with more than 28,000 people moving to the city in 2025, according to the Nashville Chamber of Commerce. As Music City continues to attract new residents, there’s still high demand for housing stock, resulting in strong building activity.
With all these new arrivals, concerns around traffic and housing affordability loom larger than ever. Many of the once-affordable homes close to the city are being torn down and developed into the infamous “tall-skinnies,” packing double and triple the square footage onto lots that once held small single-family homes.
All in all, it’s an interesting time for buyers, sellers, realtors, appraisers, and mortgage lenders as the market moves beyond its peak.
Nashville Real Estate Rockstars congratulates all our clients on their real estate success in 2025, and we look forward to helping more clients move forward with their real estate goals in 2026.
Now, let’s look at the numbers for Q4 of 2025.