Is Now the Right Time to Buy in Nashville? A Realtor’s Honest Take

Aug 20

If you’ve been watching Nashville’s real estate market in 2025, buying now might actually be the smart move. Here’s an in-depth look—backed by fresh data—to help you decide.

1. Mortgage Rates: A Window of Opportunity

As of August 20, 2025, the average 30-year fixed mortgage rate in Tennessee sits around 6.63%, while the 15-year fixed rate is closer to 6.03% (Bankrate). That’s a meaningful dip compared to 2023–2024 highs, giving buyers a bit of breathing room.

Nationally, mortgage rates have just fallen to a 10-month low, offering some of the most affordable conditions we’ve seen in nearly a year (AOL News). Even if rates continue to shift, locking in now with the option to refinance later could save buyers more than waiting on the sidelines while rents rise and prices stabilize.

2. Nashville Prices: More Stability, More Opportunity

The median sale price in Nashville in July 2025 was $479,900, up 1.2% year-over-year, with homes taking around 62 days to sell—10 days longer than last year (Nesting in Nashville). Zillow data shows the average home value is about $443,600, down 1.2% over the past year (Zillow).

This tells us prices are flattening—great news for buyers who don’t want to chase appreciation curves. Nationally, July home prices even dropped slightly, showing a broader cooling across major U.S. markets (Redfin).

3. Inventory & Market Conditions: Buyers Are Gaining Ground

Nashville’s Market Action Index sits at 32, which indicates a balanced market—neither strongly buyer- nor seller-favored (Nesting in Nashville). But buyers have a few big advantages right now:

Homes are sitting longer. The average days on market is 105, up significantly from last year.
Price reductions are widespread. Nearly 42% of listings have cut prices from their original ask.
Less competition. The feeding frenzy of 2021–2022 is gone, giving buyers time to negotiate on inspections and closing costs.

Across the U.S., Zillow reports that 27 major metros are now buyer-favored or neutral, a sign that Nashville isn’t an outlier but part of a larger shift (Zillow Research).

4. Nashville Is Now a Buyer-Friendly Market

Axios recently reported that Nashville is among the top U.S. cities where the market favors buyers. As of mid-2025, there were nearly two sellers for every buyer, and two-thirds of homes sold below asking price (Axios).

At the same time, affordability is still a challenge: home prices have surged 53% in the last five years, and the median household income of $91K trails the $120K+ needed to comfortably afford a median-priced home (Axios).

This gap highlights why motivated, qualified buyers have such strong leverage right now—sellers need them more than ever.

5. Long-Term Prospects: Nashville’s Appeal Remains Strong

Even with affordability concerns, Nashville continues to rank as one of the fastest-growing U.S. metros. Strong job growth, corporate relocations, and the city’s cultural draw are fueling long-term demand.

Importantly, Nashville is also a top 10 metro for new construction, and many of these new homes are listing at or below existing home prices (Stock Titan). This creates more choices for buyers who want modern layouts without paying luxury premiums.

Ongoing infrastructure projects, including the “Choose How You Move” referendum, are also investing heavily in public transit and city growth, boosting Nashville’s long-term livability and property values (Wikipedia).

So, Should You Buy Now?

If you’re financially prepared and planning to stay in your home for at least 3–5 years, then yes—this is one of the best windows buyers have had in years.

Here’s why:

Rates are at their lowest in nearly a year.
Home prices are stabilizing, with room for negotiation.
Inventory is healthy, and sellers are motivated.
Nashville’s long-term fundamentals remain strong.

Bottom line: Perfectly timing the market is impossible. Instead, align your purchase with your financial readiness and lifestyle goals. For buyers poised to act, Nashville in late 2025 offers a rare mix of opportunity, leverage, and long-term upside.