This May 2025 real estate market report for single-family homes shows a mixed picture with some concerning trends for sellers but potential opportunities for buyers.
Key Market Shifts:
The most significant change is the dramatic drop in closings – down 41% from 17 last May to just 10 this May. This signals a substantial slowdown in market activity. New listings also fell 25% (from 48 to 36), suggesting sellers may be holding back due to market conditions.
Pricing Trends:
Average sale prices declined 16% year-over-year to $463,290, while median prices dropped 5% to $452,500. However, the market appears to be experiencing a pricing correction as average list prices only decreased 3% to $680,913, creating a wider gap between asking and selling prices.
Supply and Demand Dynamics:
Inventory levels remain relatively stable with total inventory up just 4% to 95 homes. However, the months of supply has increased significantly to 8.56 months – well above the balanced market threshold of 6 months, indicating a buyer’s market.
Time on Market:
Properties are selling faster once under contract (33 days vs 106 days last year), but the overall list-to-closed time has improved dramatically from 270 days to 63 days, suggesting more realistic pricing is leading to quicker sales.
Market Outlook:
The data suggests the market is adjusting to new conditions with increased inventory, longer supply periods, and price corrections. While this creates challenges for sellers, it may present opportunities for qualified buyers who have been waiting for more favorable conditions.
Reach out if you are curious about your home’s current value!
Nick Irwin | BaseNashville
nick@basenashville.com
615.418.0563
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ONWARD | 615.656.8599
