You may not feel it yet, but the housing market is shifting. 

In August, the market shifted from a strong sellers’ advantage to a more balanced neutral territory, according to Realtor.com Housing Market Trends.

So, what does this mean for you? Let’s dive in.

The Shift to a Neutral Market

For the first time this year—especially since 2019—the national housing market entered neutral territory. This means neither buyers nor sellers hold a distinct advantage, a significant change from the competitive sellers’ market we’ve seen over the past few years.

The number of homes currently for sale remains high compared to last year, with a 35.8% increase. This marks the 10th consecutive month of growth and is the highest level since May 2020.

The total number of unsold homes, including those under contract, has risen by 20.9% compared to last year.

Home sellers reduced their listing activity in August, with 0.9% fewer homes newly listed on the market compared to last year. This is the first negative reading in nearly a year.

In August, the median price of homes for sale decreased by 1.3% compared to last year, now standing at $429,990. However, the median price per square foot grew by 2.3%, indicating an increase in the inventory of smaller and more affordable homes.

Homes spent 53 days on the market, making it the slowest August in five years. This is seven days more than last year and three days more than last month.

The share of listings with price cuts reached the highest level for August in over five years, increasing by 3.1 percentage points compared to last year, to 19.3%.

Based on our estimation, the current relationship between rising inventory and days on the market is approximately 6:1 for U.S. metros. This means that every 6 percentage point annual increase in inventory is correlated with a one-day increase in the median days on the market.

Housing Trends in Nashville and Davidson County

Now that we’ve got an overview of the national housing market, let’s go local. 

Here in Nashville and Davidson County, TN, we’ve seen the following trends in August 2024, let’s break them down:

• Did you know that the current Months Supply of Inventory is 4.66 months? That means we're in a balanced market right now, making it a great time for both buyers and sellers to make their move. #RealEstate #MarketTrends

• Thinking about selling your home in Davidson County? With a List to Sold Price percentage of 98.1%, you can feel confident that you're getting top dollar for your property. Contact us today to learn more about how we can help you sell quickly and for the best price. #SellerTips #NashvilleRealEstate

• Buyers, the median days on the market in Davidson County is 60 days. This means homes are selling relatively quickly, so it's important to act fast when you find a property you love. Let us help you navigate the competitive market and find your dream home. #BuyerAdvice #HouseHunting

• The median Sold Price in Davidson County is currently $385,000. Whether you're buying or selling, knowing the current market trends can help you make informed decisions. Reach out to us for personalized guidance and expert advice on your real estate journey. #MarketUpdate #MiddleTNRealtor

• Attention all buyers and sellers in Davidson County! Over the last 12 months, the Months Supply of Inventory has increased by 21%. This shows a trend toward a more competitive market, making it essential to work with a knowledgeable REALTOR® like The Mayfield Group to achieve your real estate goals. #MarketInsights #NashvilleHomes

What Buyers Should Know

Buyers have an opportunity to explore the market with greater flexibility. In other words, you have a moment to catch your breath and make more informed decisions!

Keep in mind that the recent dip in mortgage rates, which began in early August, could bring more buyers back into the market. This may reignite competition in some markets. 

Another important consideration for buyers is that, as of August 17, 2024, new industry mandates went into place. Going forward, buyer’s agents must enter into a written agreement with the buyer before giving them a tour of any properties. This change allows for more transparency surrounding buyer agent compensation, contact me for more info!

What Sellers Should Know

Now let’s talk about sellers. There’s no need to panic—but it may be time to adjust expectations. It’s no longer 2022, when properties were selling in a matter of hours. Homes are taking a bit longer to sell, and with more inventory available, pricing your home correctly is critical. 

As the market becomes more competitive for sellers, you can also consider other incentives, such as covering some of the closing costs or offering compensation for the buyer’s agent. Even though the industry's new rules mean that compensation can no longer be made on the MLS, you still have the option to offer it to buyer’s agents off the MLS. 

Final Thoughts

Whether you are buying or selling, stay informed and be prepared to adapt. The housing market, along with mortgage rates, can cause fluctuations in buyer and seller activity. And don’t hesitate to reach out for personalized market reports or advice! You can schedule a time with us.