The Nashville housing market cools slightly - Axios NashvilleLog InLog InAxios Nashville is an Axios company.

Buying a house in Nashville is easier but not cheaper

Data: Freddie Mac; Chart: Madison Dong/Axios VisualsThe Nashville metro area's real estate market is starting to level off, according to the latest data from Redfin/MLS. Why it matters: After two-plus years of plummeting inventory and sky-high home prices, Nashville-area buyers have waited a long time for a little relief. What's happening: Mortgage rates started to surge in May and have since passed 6%. The market has changed significantly since then. By the numbers: Median home sales prices dropped from $467,000 to $450,000 from May to September. Inventory is up 72.3% since May.Homes are selling more slowly: They sold in 17 days on average in May. In September, the average number of days on market was 39. Fewer homes are selling above the list price. 19% of homes sold above list price in September, compared to 54.6% in May.In September, 33.4% of listings dropped their asking price, up 12.4 percentage points since May. Yes, but: Monthly mortgage payments are significantly more expensive than they were a year ago, meaning that buying a home isn't getting cheaper. Flash forward: But there are some indications . A says Nashville home prices could fall 20% from their peak prices this summer, driven in part by surging interest rates.Moody's forecast calls for a 10% price drop nationwide. The other side: Steve Jolly, president of Greater Nashville Realtors, tells Axios that prices are still up year-over-year, according to his organization's data. They've only fallen from earlier in 2022.If prices continue to drop, he doesn't think they'll fall that severely. He points to the Great Recession in 2008, when Nashville home prices dipped less than the national average."Nashville's always done better than the nation as a whole," Jolly says of previous downturns. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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