Ending The Year Strong! [December 2024 Market Update]

December Market Stats

December Key Takeaways

📈 – New Listings Dip, Prices Rise: Fewer new listings, but Nashville home prices keep climbing – what’s fueling the growth?

🏠 – Buyers Stay in the Game: High rates didn’t scare off buyers, with closings holding steady.

🤝 – Market in the Middle: Neutral territory persists, but could 2025 bring a shift?

👀 – Affordability Crunch: Record-high monthly payments – how are buyers coping?

December In-Depth Analysis

Supply-Side:

As we wrap up another year in the Nashville real estate market, let’s dig into the numbers and trends shaping our city. Whether you're a seasoned homeowner or a first-time buyer, this update will give you the scoop on what’s been happening and what might lie ahead in 2025. Let’s dive in!

New listings in Davidson County in December 2024 came in at 657 – a 12.6% drop from December 2023 (752 listings).

Compared to December 2022, the numbers have held steady, showcasing a pretty consistent supply trend over the past couple of years. Stability is the name of the game (See chart below).

Here’s a fun fact to end the year: since January, 14,520 new listings hit the market – just 20 more than I predicted! Not to brag, but maybe I should start buying lottery tickets!

The sticking point for more new listings? You guessed it – high interest rates.

Homeowners are holding tight, hesitant to trade their low-rate mortgages for something higher. If rates ever take a tumble 🤞, expect more folks to list their homes.

Total inventory remains slightly elevated compared to 2022 and 2023 (See chart below).

And for the dreamers hoping that higher inventory means lower prices – sorry to burst your bubble. Davidson County inventory has been elevated for over two years, and guess what? Home prices have only gone up.

For prices to truly drop, we’d need inventory to climb 10–15% higher than today’s levels. So, buyers, keep your expectations realistic and maybe keep that vision board handy.

Demand-Side:

Contracts signed in December 2024 hit 459 – down from 517 in December 2023 but up from 431 in December 2022 (See chart below).

The homes that went under contract in the fall are now closing, keeping the market moving despite those pesky high rates.

Speaking of rates, remember that mortgage drama back in September? Rates dipped in anticipation of the Federal Reserve’s rate cut, only to rebound when the cut actually happened. The result? Elevated rates ever since.

Closings in December 2024 came in at 640, up slightly from 610 in 2023 and 595 in 2022. This uptick proves that demand is still alive and kicking, even in the face of rising home prices, high rates, and inflation (See chart below).

For the year, we finished with 8,059 closings – just shy of 2023’s 8,284. Not bad, Nashville. Not bad at all (See chart below).

Supply vs Demand:

The Felix Market Meter remains in neutral territory, with a slight tilt toward buyers. That said, 2025 could shake things up. Stay tuned!

As expected, months of supply peaked in November, with the holiday season naturally slowing things down. December followed the script, with fewer new listings and inventory slightly elevated compared to 2022 and 2023 (See chart below).

Average days on market? A cool 33 days, unchanged from November. Expect this to tick down come February as buyers re-emerge from their holiday hibernation.

Home Prices:

The median and average sales prices in Davidson County continued their ascent in December 2024, climbing higher than December 2022 and 2023. If you’ve been holding out for a market correction, you might be waiting a while.

If mortgage rates ever dip below 6% again, expect the market to take off!

Mortgage Rates:

The average 30-year mortgage rate in December 2024 stayed stubbornly high.

Higher rates may have cooled demand slightly, but they’ve done nothing to bring property values down. Sorry, affordability fans—2024 wasn’t your year.

Affordability Check-In:

Let’s call it like it is: 2024 was a rough year for affordability. Rising home prices and sticky-high interest rates have pushed monthly payments to record levels.

If you’re feeling the pinch, you’re not alone. Nashville is a great place to live, but it’s not getting any cheaper.

As we step into 2025, all eyes are on mortgage rates and inventory levels. Will rates finally budge? Will more supply hit the market?

One thing’s for sure – Nashville’s real estate market is as resilient as ever. Whether you’re buying, selling, or just curious, Felix Homes is here to help.

About Felix Homes

Felix Homes is where five-star service meets low commissions! To date, we've saved our clients $1,610,738 in commission fees and have earned 120 five-star reviews on Google!

How are we able to offer five-star service AND lower commission fees? It's simple:

• We're an independently owned brokerage – not a franchise which allows us to keep more of the commission we earn.
• By offering a lower commission, more folks want to work with us which means we close more deals. By closing more deals, we can pass more savings along to our customers!

Still not convinced? Read all about our low-commission mission here.

If you have any questions about the state of the market or the home buying/selling process, please feel free to contact us at contact@felixhomes.com or 615-354-5731.