Nashville’s market has a clear preference for buyers. Even though homes in areas like East End list for as high as $1,300,000, some of them wind up selling for about $1,000,000 less than their asking price. This is something to be worried about. With great properties selling for pennies on the dollar, average properties are bound to take the same kinds of losses.
This is partially attributed to the market’s recovery from the collapse. Values took a sharp downward spiral, hit rock bottom, and then shot right back up. They kept shooting, and in some cases, previous high values were surpassed. The biggest issue with this growth is that it wasn’t necessarily warranted – homes didn’t get any better, and the growth was completely unprovoked. Averages soared an impressive $60,000 above their former highs without a good reason.
The growth has technically created a healthy market, but it’s a healthy market that isn’t making a lot of sales. Exponential growth coupled with the meager 14% of homes that sell at a price cut is somewhat baffling. Reduced price sales would be more abundant in a market that’s actually moving, but most of Nashville is stuck. Overall, the market acts like a series of clogged pipes. Things shift until the occasional home breaks through, but the congestion isn’t getting measurably better.