MURFREESBORO, Tenn. – Middle Tennessee State University’s Consumer Research Bureau takes an in-depth look at the state’s housing and real estate market from the perspective of buyers, sellers, and homeowners.
The first edition of the firm’s Tennessee Housing Market Report found that while the median home sales price in Tennessee is down nearly 4% from June’s high of $401,000, “The median sales price still feels expensive given the 44% increase since then.” 6% in 2021 and 6% over the past year,” said report author Michael Peasley, office director and associate professor of marketing in the Jones College of Business.
“With these price increases, our latest consumer survey shows that only 7% of Tennessee consumers think now is a good time to buy a home,” Peaslee added.
Other highlights:
Monthly payments will decrease as interest rate cuts approach
The median mortgage payment in Tennessee is $1,952, down 7.6% from a high of $2,113 in June 2024. However, consumers still feel that home prices are high, with payments increasing by 125% since January 2021. The median mortgage payment in Tennessee is now 30% of household income, down from 35% in June 2024, but up 71%. This was up from a four-year low of 17% in January 2021.
After a few days on the market, housing supply begins to increase seasonally.
The number of days on the market for Tennessee homes increased by 12% to 55 days in August from a low of 49 days in June 2024, and by 17% compared to August 2023, increasing the number of days on the market from fall to winter. This data is about a potential trend that deserves attention. season. Similarly, there is currently 3.5 months of inventory on the market, an increase of 22% from 2.9 months in August 2023.
About the report
The Housing Market Report is based on data collected from the St. Louis Federal Reserve, U.S. Census Bureau, and Redfin Data Center. (Note: Median mortgage payments are calculated using the median sales price, which includes a 20% down payment.)
In addition to the Housing Market Report, the Bureau of Consumer Research collects data throughout the year to measure Tennessee consumer and business leaders’ perceptions of the economy. That data is available at mtsu.edu/consumer.
