As of July 2024, the median home price for the Nashville-Davidson-Murfreesboro-Franklin metropolitan area was around $447,000, a 2% increase from a year earlier.
According to one prominent forecast, the Nashville-area housing market could flatline over the next year, at least where home prices are concerned. Zillow predicted the median home price for this metro would decline by -0.5% from May 2024 to May 2025.
Granted, that’s a marginal decline in values. But the fact that they expect a drop of any size is noteworthy, when you consider how fast prices were rising just two years ago.
The graph below shows the median home value for the Nashville metro housing market going back to 2016. It’s based on data provided by Zillow.
You’ll notice three distinct trends in the above graph:
- First, you can see where the COVID pandemic greatly accelerated home-price growth in the Nashville area, from 2020 – 2022.
- You’ll also notice that prices peaked at an all-time record high toward the end of 2022, followed by a brief and shallow downturn.
- Lastly, you can see how the median price has been mostly flat in recent months.
Recent forecasts for the Nashville-area housing market predict a continuation of trend #3 above. Analysts expect house values to hover within their current range through the remainder of 2024 and into 2025.
By Brandon Cornett | Copyright © HBI 2024 | All Rights Reserved
How much should a house appreciate in 5 years?
Specific data may vary by location, but on a national level, the FHFA reported an average annual home price appreciation rate of approximately 5% !
The most common factors that impact home value include:
- The housing market: The housing market can affect a home’s appreciation. …
- Location: The location of a home will impact its appreciation. …
- Interest rates: Interest rate trends affect appreciation due to their impact on prospective home buyers.
Lakewood Realty Blog 