Nashville, TN Housing Market Report

The Nashville-Davidson--Murfreesboro--Franklin metropolitan area is currently experiencing a definitive shift toward a buyer-friendly environment as of December 2025. With active inventory surging by 17.5% year-over-year to 8,589 units and homes sitting on the market for an average of 83 days—a significant 17-day increase from last year—buyers now have substantially more leverage and selection than in previous cycles. The sale-to-list ratio of 0.98 indicates that most properties are selling for slightly below their asking price, reflecting a cooling demand and a move away from the aggressive bidding wars that characterized the region in recent years.

Price trends have shown a consistent, albeit gradual, downward trajectory over the latter half of 2025. Since July, the median home value has declined from $433,156 to the current $428,541, marking a 2.13% year-over-year decrease. This softening of prices is largely driven by the accumulation of inventory and the extended time it takes to move listings, forcing sellers to be more realistic with their valuations. While the sales market cools, the rental market remains remarkably stable, with median rents ticking up slightly by 0.58% to $1,763, suggesting that while homeownership demand has slowed, the underlying need for housing in the region remains intact.

Looking ahead, the Nashville market is entering a period of stabilization that favors patient participants. For buyers, the current climate offers a rare window to negotiate on price and contingencies without the pressure of immediate competition. Sellers, conversely, must prepare for longer holding periods and ensure their properties are priced competitively from the outset to avoid stagnation. As inventory continues to grow, the market is likely to remain in this balanced-to-buyer-favored state through the early months of 2026, making it an opportune time for those looking to enter the Middle Tennessee market at a more accessible price point.