Nashville's housing market never stays the same for long. Between job growth, new residents moving to Music City, and changing interest rates, the real estate landscape shifts constantly.

Smart buyers and sellers stay on top of these changes. The difference between good timing and bad timing can mean thousands of dollars - or missing out on your dream home entirely.

This market update gives you the real numbers and practical advice you need. Whether you're buying your first home or selling to upgrade, here's what's happening with Nashville real estate right now and what it means for your next move.

5 Things You Need to Know About the Nashville Real Estate Market - May 2025

• Home prices jumped 3% higher - average sale price now $853,811
• Buyers have 29% MORE homes to choose from than last year
• Homes sell in 26 days on average (1 day longer than May 2024)
• There were 527 closings in May - that's more than 16 per day
• New listings dropped 9% - fewer homes coming on the market
• Months of supply is up 46% - closer to a balanced market, but sellers still have a slight advantage

By The Numbers: Nashville Market Data

Home Prices Keep Climbing

Nashville home prices went up in May 2025, but not by much compared to last year.

The average sale price hit $853,811 - that's 3% higher than May 2024. The median price stayed flat at $613,000, which means half the homes sold for more and half sold for less.

But here's what's interesting: sellers had to drop their asking prices more than before. The average list price was $1,012,027, but homes actually sold for about $158,000 less than that. This could mean buyers are finding more negotiating power across the board. Or, the most expensive homes (that tend to inflate average selling price reports) could be experiencing more price adjustments, while moderately priced homes are being sold closer to the listing price. 

More Homes Available for Buyers

Good news if you're shopping for a home!

Active inventory jumped 29% compared to last year. There were 2,081 homes for sale in May 2025 versus 1,611 in May 2024.

Total inventory (including homes under contract) increased 16% to 2,798 homes. Higher inventory could mean sellers will be more willing to negotiate on prices. That said, the months of inventory is quite low enough yet to push Nashville into a true buyers' market. 

Sales Activity Slowing Down

Fewer homes were actually sold in May 2025.

Only 527 homes closed, down 18% from 642 closings in May 2024. New contracts dropped 3% to 535 homes going under contract.

This means the market is moving at a slower pace than last year. Buyers are taking more time to decide.

Also worth noting: the total number of closings actually increased in Davidson County as a whole compared to last month. This could mean there's more activity in the suburbs than Nashville proper right now. 

Time to Sell Increased Slightly

Homes spent 26 days on the market before selling, just one day longer than May 2024.

But the bigger change? It now takes 61 days from listing to contract (12% faster) and 36 days from contract to closing (4% faster).

The overall time from listing to closing dropped to 89 days, 4% quicker than last year.

It seems like buyers know what they want and are ready to act fast. 

Market Balance Shifting

Nashville now has 4.86 months of supply - that's 46% higher than last year's 3.33 months.

What does this mean? A balanced market typically has 5-6 months of supply. Nashville is getting close to balanced, which is good news for buyers who've been dealing with limited choices.

Your Best Buyer Strategy Right Now

1. Get pre-approved first - Know exactly what you can afford before you start shopping
2. Don't rush - You have more time to think than buyers did last year
3. Negotiate on price - Sellers are accepting offers further below asking price
4. Consider homes that have been on the market 30+ days - These sellers might be more motivated
5. Factor in all costs - Higher home prices mean higher down payments and closing costs
6. Work with an agent who knows Nashville neighborhoods - Local expertise matters more when you have choices

Your Best Selling Strategy Right Now

1. Price it right from day one - Overpricing costs you time and money in this market
2. Make your home show-ready - Small improvements matter more when buyers have choices
3. Be realistic about timing - Plan for 60-90 days from listing to closing
4. Stay flexible on negotiations - Buyers have more power than they did last year
5. Consider buyer incentives - Help with closing costs or rate buydowns can make your home stand out
6. Work with an agent who understands current market timing - Pricing strategy is crucial right now

Looking Ahead: Summer 2025 Forecast

Nashville's market is moving toward better balance. We expect this trend to continue through summer.

More inventory should give buyers even more choices by July and August. But don't expect prices to drop - they'll likely keep growing at a slower pace.

Sellers who price competitively will still do well. Those who overprice will sit longer and potentially have to make bigger price cuts.

Interest rate changes could shift everything. If rates drop, expect more buyer activity. If they rise, the market could slow further.

Davidson County Housing Market Report: April vs May 2025

Curious about the state of Greater Nashville's housing market? Check out the chart to see how May 2025 compares to April 2025.

Ready to Make Your Move?

Thinking about buying or selling in Nashville? The market is more nuanced now than it was during the wild buying frenzy.

Talk to a local agent who tracks these numbers daily and knows how to position you for success in the current market. Local knowledge makes all the difference when conditions are changing this quickly.