Home prices are starting to decrease, but what does this mean?

WSMV's Joylyn Bukovac reports.
Published: Sep. 13, 2022 at 10:56 AM CDT
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NASHVILLE, Tenn. (WSMV) - Home prices are starting to decrease, but interest rates are going up. This also means homebuyers are paying higher mortgages.

Median home prices across Middle Tennessee started declining slightly at the beginning of the summer and saw a steadier decline towards the end of summer.

Between July and August, the median price for a home near Davidson County went from $490,000 to $475,000, according to Greater Nashville Realtor’s website.

Blake Soreano, the CEO of Sell Your House Direct says to keep in mind, that even though the housing market is softening, shrinkflation is impacting homebuyers. This means people are paying more per square foot. In Nashville, Soreano says the median listing home price per square foot was $287. The median listing home price in Nashville was $489,000 in August 2022, trending up 22.9% year-over-year.

Soreano says buying a home is not something you should rush.

“Look for exactly what you want. Have some patience. The market is softening. What you can get today, you might get a little bit of a better deal tomorrow. We still do have an inventory problem. If you get into something that will fit all your needs, move on it,” Soreano explained.

He says home prices in Nashville are still up by 155,000 dollars compared to what they were right before the pandemic. Soreano says for a stable housing market, we need 18,000 available homes on the market to keep up with demand. In August 2022, there were 9,302 homes available in Middle Tennessee.

Data information for Nashville.
Data information for Nashville.(Greater Nashville Realtors)