Nashville-area home prices rose at a faster clip than the nation in the fourth quarter, resulting in a 5.7 percent decline in affordability, according to a new quarterly report from the National Association of Realtors.
The median sale price of existing single-family homes rose 10.7 percent to $207,300. That increase bests the 6.9 percent national average, though the Nashville area remains below the $222,700 U.S. median price.
"It's due to the fact that Nashville is a very good job market, thereby fueling housing demand," Lawrence Yun, chief economist with the Washington, D.C.-based national Realtors trade group, said about the higher local median price increase. "At the same time, the homebuilders are not actively building in the Nashville area to meet the supply."
Citing the Nashville metro area's relatively strong economy, Yun said existing median homes sale prices should rise faster here this year versus his forecast of 5 percent national average growth. However, he said although some people are getting priced out of the local market as prices rise, the city remains relatively affordable and people with good jobs can still afford to buy homes.
Nationwide, Nashville was the 52nd-most expensive market among 179 metro areas tracked by the Realtors group. The five most expensive markets were in California and Hawaii.
Locally, rising home prices, including in neighborhoods such as Germantown and Sylvan Park that ...