Is Nashville’s housing market shifting as price cuts reach 39%?

Nashville’s housing market recorded 7,277 active listings in the week ending Nov. 29, with 39.1% of sellers cutting prices as the metro’s inventory rose to 3.4 months of supply. The average list price remained at $594,900, while the price per square meter reached $260.8.

The Music City market absorbed 663 homes during the week, while 354 new homes came onto the market. Properties spent an average of 84 days on the market, which matched Tennessee’s statewide pace but was higher than the national average of 77 days.

Inventory and pacing

Nashville’s 3.4-month supply exceeded both Tennessee’s 3.3-month supply and the national average of 2.8 months. Metro’s 7,277 active listings reflected neutral market conditions, with weekly admissions outpacing new inventory nearly 2-to-1.

The 354 homes that came onto the market represented a new flow of inventory, while 663 homes left active status through sales or other results. Nearly one in four listings (24.4%) were relisted after previous exposure to the market.

Prices

At $594,900, Nashville’s average list price was a 36.8% premium over Tennessee’s median of $434,900. The metro’s price of $260.8 per square foot exceeded the state’s $220.7 by 18.1% and exceeded the national $209.9 by 24.2%.

Price adjustments dominated sellers’ strategies, with 39.1% of active listings showing reductions, while only 2.2% increased prices. This 18-to-1 ratio of cuts to increases marked aggressive seller repositioning.

What to watch

Keep an eye on supply versus absorption rates in 3.4 months. Track whether the 39.1% markdown rate stabilizes or accelerates. Monitor the 84-day average DOM for signs of market velocity changes.

Use the 39.1% markdown rate to advise sellers on realistic pricing strategies. Track the median of $594,900 versus the state benchmark of $434,900 to identify value opportunities. Keep an eye on the 663 weekly absorption rate to gauge buyer activity levels. Share the 3.4 month supply metric with customers to illustrate the current market equilibrium. Advise buyers to use the 84-day DOM when negotiating, especially on properties approaching this threshold.

HousingWire used HW Data to uncover this story. Generate housing market reports to see what’s happening in your own local market. For enterprise customers looking to license the same market data on a larger scale, visit HW Data.

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