For my clients and anyone looking to buy or sell a luxury home in the Nashville market – If you’re waiting on the sidelines to see what the market does…STOP! That magic time is not coming. I’m here to tell you why and share strategies you can use right now to buy and sell successfully.
I’m not going to spend a long time on stats, but it is important to understand the key market indicators so you can create a successful strategy. If you’re a data nerd like I am, the links to all of these graphs can be found in below:
For the Data Nerds 🤓, here are the key market indicators:
Let’s put some stats in historical context:
– The average time it takes to sell a luxury home over the last 5 years here in Nashville has hovered around 60 days. Today it’s taking 20.
– Over that same time period, sales prices have averaged 95% of the list price – today, they are at 99%
– From 2018 to 2021 we averaged 10-12 months of inventory – today we are at 5.
What does this mean for buyers and sellers in the Nashville luxury market?
Sellers: The upside is that you can sell your home in less than a month, but if you find yourself with more than 30-45 days on the market, buyers will get skeptical. They’ll wonder if there is something wrong with your house or if you are overpriced. You’ll start making price reductions, and they’ll wait to see how low you will go. You will chase the market down. You will sell for less, and it will take longer. Here’s the key – inventory is low. If you want to sell, now is a fantastic time, but price your home WHERE the market is. Don’t price high assuming you will negotiate – that strategy will bite you.
Buyers: I’m not afraid to make discounted offers, but right now it’s not working, and here’s why. Inventory is low, and low inventory is not changing any time soon. Sellers that are on the fence about selling are reluctant to let go of their historically low-interest rates. Fair-weather spec builders have stopped building. With limited homes on the market, we can help you find off-market homes, but those sellers have not officially listed and will not feel the need to give you a big discount. If you’re in the market for a home, expect to land within 2% of the list price. This is still a much better environment than you’ve seen over the last 3 years – you are not in a bidding war, and you can make an educated purchase which includes a formal inspection and appraisal.
Whether you’re a client or a stranger, I’d love to hear your thoughts and questions, so please leave them in the comments, and I’ll respond.