Nashville housing market balances as inventory and price cuts rise

Nashville’s housing market recorded 7,277 active listings during the week ending Nov. 29, with 39.1% of sellers reducing prices as the metro’s inventory climbed to a 3.4-month supply. The median list price held at $594,900 while price per square foot reached $260.8.

The Music City market absorbed 663 homes during the week against 354 new listings entering the market. Properties spent a median 84 days on market, matching Tennessee’s statewide pace but exceeding the national median of 77 days.

Inventory and pace

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

The 354 properties entering the market represented fresh inventory flow, while 663 homes left active status through sales or other outcomes. Nearly one in four listings (24.4%) had been relisted after previous market exposure.

Pricing

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

Price adjustments dominated seller strategy, 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

Monitor the 3.4-month supply against absorption rates. Track whether the 39.1% price-cut rate stabilizes or accelerates. Watch the 84-day median DOM for signs of market velocity changes.

Use the 39.1% price reduction rate to counsel sellers on realistic pricing strategies. Track the $594,900 median against the $434,900 state benchmark to identify value opportunities. Monitor the 663 weekly absorption rate to gauge buyer activity levels. Share the 3.4-month supply metric with clients to illustrate current market balance. Advise buyers to leverage the 84-day DOM when negotiating, particularly on properties approaching this threshold.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate housing market reports. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.