I asked Greater Nashville Realtors Association your top questions about the 2025 real estate market

Many of you are waiting for that perfect moment to buy a home, and as a realtor here in Nashville, I understand how challenging it can feel to make the leap. Interest rates in 2024 caused a lot of potential homebuyers to press pause on their plans. I saw it firsthand with some of my clients—it’s tough to navigate the uncertainty.

With that in mind, I turned to the Greater Nashville Realtors Association to help answer some of your top questions about the 2025 real estate market. We all know the rollercoaster of mortgage rates in 2024 discouraged many buyers. According to Freddie Mac, the average 30-year fixed-rate mortgage ranged from 6.08% to 7.44% from November 2023 to November 2024, making it difficult for many to commit.

However, there’s some good news for 2025. The Greater Nashville Realtors Association predicts a shift in buyer confidence as more people come to terms with mortgage rates in the 6-7% range. Jack Gaughan, the association’s 2025 president, explained that buyers are starting to feel more comfortable budgeting with these rates, which is helping them plan more effectively.

The market is also expected to be more balanced this year. Realtor.com suggests that for the first time in about a decade, inventory and demand could align. That said, the type of home you’re looking for might still be tough to find. New construction is on the rise, but smaller lot sizes and different styles may not match everyone’s preferences. Meanwhile, resale inventory—those ideal homes lived in for a few years—is still limited, which is putting some pressure on the market.

In November 2024, there was more inventory available than during any of the first six months of the year, which was a positive sign. We saw 7,631 residential properties, 1,827 condominiums, 102 multi-family properties, and 1,815 farms, land, or lots for sale. While it’s hard to predict the entire year ahead, there’s still a lot of pent-up demand. Waiting another year could mean missing out on great opportunities.

If you’re thinking about buying in 2025, my advice is simple: talk to your realtor and lender. Make sure you understand which neighborhoods and markets are heating up and where you might find the best chance to thrive. With big players like Amazon and Oracle staffing up their local offices, competition in Middle Tennessee will likely increase, and now is the time to prepare.

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