NASHVILLE, TN (WSMV) - It’s no secret that Nashville has become one of the nation’s hot spots when it comes to home buying. But new data shows that people moving from out-of-state have now surpassed the number of locals looking for new homes here.
Last year, more than half of homes sold in Music City were from people moving from out of state.
“People are moving from New York, Los Angeles... Nashville is very affordable compared to some of those expensive coastal cities,” Daryl Fairweather, the Chief Economist at brokerage company Redfin, explained.
And they’re bringing more cash. Homebuyers moving to the area in 2020 boasted a budget almost 50% larger than the average area resident also looking to buy a home— the widest gap of any city examined in a new study from Redfin.
Out-of-towners are also spending more money. On average, they set their home search budget around $720,000, while locals are only topping out around $480,000.
“There’s this really big gap between what people out-of-state are bringing versus what people locally are able to buy,” Fairweather said. “That increases competition, and it also means that price will get bid up because those people are coming with more money.”
More than two-thirds of homes that sold in Nashville last year had multiple offers. Others had bidding wars that drove the cost thousands of dollars above the asking price. The number of homes sold above the asking price reached a record level last year.
“Bidding wars happen more often than not. If you make an offer, you should expect to face some competition. Especially if it’s a home that’s been recently listed,” said Fairweather.
Last year, 63% of home buyers bought sight-unseen, meaning they put in an offer without ever stepping foot inside the home.