Housing is a highly dynamic system that plays a vital part in the economy as well as the lives of people. If you’re planning to buy or sell your home or want to understand the latest trends, knowing the latest prices for homes and trends is crucial. We delve into the prices of houses and developments in Tennessee. Tennessee marketplace for housing. Let’s look at some patterns that offer valuable information to sellers and buyers in the ever-changing housing market.
Current House Prices & Trends in Tennessee
According to Redfin, in October 2023, the median home price for homes in Tennessee experienced a 4.0 percent increase over the previous year, resulting in an average of $371,900. This figure indicates the continued improvement in the housing market, demonstrating the ongoing demand for homes.
Regional Variances in Price Growth
Interestingly, a few cities in Tennessee have experienced a dramatic increase in the prices of homes. Greeneville is at the top of the list with a staggering 63.1 percent growth and is then Oak Ridge at 28.1% and Germantown at 24.6%. These figures show the diverse character of the state’s estate market.
Housing Supply Dynamics
The number of homes available on the market is essential in determining buyer choices and the market’s competitiveness. In October 2023, there were 31850 homes available for sale in Tennessee, a 1.1 percent decrease from the prior year. The median month of supply is 4 months, emphasizing the equilibrium between supply and demand.
Competitiveness in the Market
Knowing the markets’ competitiveness is crucial for both sellers and buyers. In October 2023, 19.4 percent of homes in Tennessee purchased at or above the listed price, highlighting the market competition. Also, the sales-to-list rate was 97.8 percent, indicating an active and balanced market.
Top Cities for Migration in Tennessee
Analyzing trends in migration provides information about the attraction of various areas. For the period in question, Tennessee emerged as a well-known destination and a top destination for millennials. Nashville is among the top 10 places people are relocating to, with a net flow of around 2,800. The appeal of Tennessee is demonstrated by its place in the five leading states that homebuyers are looking to relocate to.
Tennessee Housing Market Forecast 2023-2024
Zillow’s most recent data provides new insights into the Tennessee housing market, providing an extensive look at essential real estate market indicators. The average home value in Tennessee is $309,795, a 2.5 percent increase in the last year. Amazingly, homes will go to waiting status in about 17 days, a sign of a vibrant and swiftly moving market.
Inventory and Listings:
- For Sale Inventory (October 31, 2023): 24,407
- New Listings (October 31, 2023): 7,882
Sale Metrics:
- Median Sale to List Ratio (September 30, 2023): 0.990
- Median Sale Price (September 30, 2023): $313,333
List Price Statistics:
- Median List Price (October 31, 2023): $394,467
Market Trends:
The median selling price of houses in Tennessee, which was $313,333 on September 30, 2023, is a sign of the value customers are ready to fork out. The average list price on October 31, 2023, was $394,467, suggesting an upward trend in buyers’ expectations.
Sales Performance:
- Percent of Sales Over List Price (September 30, 2023): 23.1%
- Percent of Sales Under List Price (September 30, 2023): 54.9%
These figures highlight the fierce competition in the market and show significant proportions of homes sold at prices that are higher than the listed price.
Regional Forecast for Tennessee: Top 10 MSAs for Home Price Growth
Base Date (31-10-2023): 0.5% | 30-11-2023: 0.8% | 31-01-2024: 3.6% | 31-10-2024: 3.6%
Crossville, TN
Base Date (31-10-2023): 0.4% | 30-11-2023: 0.7% | 31-01-2024: 3.6% | 31-10-2024: 3.6%
McMinnville, TN
Base Date (31-10-2023): 0.5% | 30-11-2023: 0.7% | 31-01-2024: 3.4% | 31-10-2024: 3.4%
Base Date (31-10-2023): 0.6% | 30-11-2023: 0.9% | 31-01-2024: 2.6% | 31-10-2024: 2.6%
Morristown, TN
Base Date (31-10-2023): 0.5% | 30-11-2023: 1.0% | 31-01-2024: 2.6% | 31-10-2024: 2.6%
Tullahoma, TN
Base Date (31-10-2023): 0.0% | 30-11-2023: 0.2% | 31-01-2024: 2.5% | 31-10-2024: 2.5%
Greeneville, TN
Base Date (31-10-2023): 0.4% | 30-11-2023: 0.5% | 31-01-2024: 2.4% | 31-10-2024: 2.4%
Athens, TN
Base Date (31-10-2023): 0.5% | 30-11-2023: 0.9% | 31-01-2024: 2.4% | 31-10-2024: 2.4%
Kingsport, TN
Base Date (31-10-2023): 0.6% | 30-11-2023: 1.0% | 31-01-2024: 2.3% | 31-10-2024: 2.3%
Shelbyville, TN
Base Date (31-10-2023): 0.3% | 30-11-2023: 0.5% | 31-01-2024: 2.3% | 31-10-2024: 2.3%
Zillow’s forecast for the region gives valuable information about the expected price increases for homes over the 10 most popular MSAs in Tennessee. This will help homeowners and potential buyers make informed choices in the ever-changing real estate market.
Other Factors That Can Impact the Housing Market in Tennessee
If the housing market grows, it’s partially due to job growth and decreased unemployment. The housing market is intricately dependent on the economy. Economic health and job growth impact buyers of real estate’s purchasing capacity. Tennessee has seen the employment market expand by 1.8 percent over the past year.
The future growth of jobs over the 10 years ahead is expected to be 41.6 percent, more than the US standard of 33.5 percent. Tennessee was named the 11th most favored economy in the nation in a study by WalletHub. The ranking included all 50 states and the District of Columbia, ranked just behind Tennessee as 10th.
The state was ranked fourth in economic activity, fifth in financial health, and 38th for innovation potential. The state topped the list for GDP growth between 2020 and 2021, which is a significant aspect in the ranking of its economic activity. Tennessee saw 8.6 percent real GDP growth, lower than New Hampshire (8.5%) and California (7.8%).
The need for housing increases as the population increases. This means that over the long term, increasing population leads to increased demand for housing and, in turn, to a booming real market for real estate. Population growth has a positive influence on the housing market. Middle Tennessee is an area that is continuously expanding, and according to the United States Census Bureau, Spring Hill was among the top 10 cities in the region with population growth.
Spring Hill was named the 10th most rapidly growing city in America between 2020-2021. According to the Boyd Center for Business and Economic Research, Tennessee could increase its population by more than one million in twenty years. It is expected to increase to a total of 7.87 million in 2040.
The number of people in their prime years of work between the ages of 25 and 54 is expected to grow much slower than the state population. The state’s population growth will slow down over the coming two decades. Between 2010 between 2010 and 2020, Tennessee’s population was up 8.9 percent. The population is projected to decrease by 7.7 percent between the years 2020 to 2030. From 2030 to 2040, the rate could fall even further to 6.2 percent.
The Tennessee Quarterly Business and Economic Indicators report, released by the state’s leaders, demonstrates the health of Tennessee’s economy. The report shows 21,353 new companies were registered for the first time within the 1st quarter of 2022. This represented an increase of over 8 percent over the same quarter in 2017.
The report states that 9,454 new companies were registered in the four biggest counties, including Shelby, Davidson, Knox, and Hamilton. Knox County saw the most significant rise in filings of new companies compared to the previous year, with 1,366 filings in the initial phase, which represented an increase of 14.2 percent. The report also states that the state’s nominal personal income was $382.8 billion in the quarter ending in 2021. That’s increasing by 7.4 percent over the prior quarter.