Writer: Joshua Andino
2 min read August 2023 — Nashville has secured the top spot to buy a house for large cities this year, according to Wallethub’s 2023 Best Real Estate Markets report.
The Music City secured the top spot amongst large cities which exceed a population of 300,000. Out of overall markets however, McKinney and Frisco, TX won the top first and second spots, respectively.
The study considered 17 different metrics that included median home price appreciation, vacancy rates, local job growth, local mortgage rate delinquencies and credit scores, and assigned a score between zero to 100. Nashville received a total score of 71.71, followed by Austin TX, and Seattle, WA at 69.63 and 67.60, respectively. Nearby Murfreesboro landed the number 12 spot amongst overall markets, with a score of 67.83.
The report noted that the housing market is increasingly favorable to sellers as a result of increased interest rates and home values having risen over 1% over the course of the last year.
Brad Copeland, current president of the Greater Nashville Realtors Association, noted in an interview with Invest:Nashville 2022-2023 at the end of last year that, “Overall, the main challenge is that with rising interest rates, your buying power is reduced, which is going to force more people who were moving perhaps out of the rental market and into the homeowner market back into the rental and that is a big challenge for realtors going forward.”
Prices across Nashville are projected to continue increasing over the course of 2023 due to the growing population. “As a region over the last year, we saw a 16% appreciation rate. That’s huge. And historically, we’re somewhere between that and 4% to 8%, depending on the pocket that you’re looking at. I think we’ll return to that,” noted Copeland in his interview.
The most recent projections from Zillow and reported by Norada Real Estate Investments note a 7% increase in housing prices across the Nashville-Davidson–Murfreesboro–Franklin area.
Inventory would remain a key factor to watch, Copeland said. “Today, as we have seen the increase in interest rates, we’ve seen an increase in our inventory, and we are seeing a bit of a slowing down in regard to the multiple offers that we were seeing just a couple of months ago,” he said. Active listings have continued to grow throughout the area after hitting a low at the beginning of last year, with under 2,000 available listings. Today, that number hovers at just under 6,600.
While Nashville, Austin and Seattle secured the top three spots, Baltimore, New Orleans, and Cleveland were ranked bottom three.
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