Home buyers and sellers navigating the luxury home real estate market in Nashville will quickly realize there are nuances to purchasing homes in this market segment. While the buyer pool is smaller, buyers are quite active and once they find what they want, they are likely more passionate about the home.
If you’re considering purchasing a luxury home, review these trends to prepare for the process and better understand the unique characteristics of luxury home buying.
What Is a Luxury Home?
The definition of a luxury home will vary based on who you ask and where the market is at. But if you’re considering a luxury home in Tennessee, you’ll be looking at the top 5-10 percent of homes in your area. These homes are generally listed at no less than $2 million, though in some areas they might be far more expensive. The median luxury home price in Nashville was $3.5 million as of April 2022.
Some factors that could influence whether the home is considered luxury real estate include:
- Square footage
Just because a home has some luxury amenities does not mean that it is a luxury home. But most buyers know a luxury home when they see it.
2023 Luxury Home Real Estate Market Trends
With an idea of what a luxury home is, here’s a look at trends impacting these homes in 2023 throughout middle Tennessee.
1. Luxury Homes Are Holding Their Value
Some buyers are concerned that the mild correction presently seen in the housing market might mean luxury home values are dropping. While homes are not appreciating at the breakneck pace of 2020, 2021 and early 2022, they are still holding their value quite well.
The average residential sale price for Williamson County in January 2023 was $1,069,987 compared with $1,025,992 in January 2022.
2. House Inventory is increasing
The inventory of homes for sale in Williamson County has increased from 1,298 in January 2022 to 1,637 in 2023. That means if you’re in the market for a home in the area, you’ll have more options to find exactly what you’re looking for.
- Sellers Have to Work Harder for Their Homes to Stand Out
While increases in inventory are generally seen as a good sign for the housing market, it does put some pressure on buyers to be extra picky about their real estate agents and home listings.
More inventory means more home sales competition, requiring more effort from sellers to make their listings stand out and highlight what’s truly unique about the property, according to the 2023 Luxury Outlook report from Sotheby’s International Realty.
4. The Most Popular Home Search Criteria in Nashville
Considering selling a home in Nashville? Make sure you work with your realtor to highlight these sought-after aspects of homes in the area, according to Realtor.com.
- Large lot
- Open floor plan
- Fenced yard
- Properties with acreage
- Modern, updated kitchen
- Kitchen island
- Swimming pool
- Tennis Court
- Vaulted ceiling
5. Cash Offers Are Making a Comeback
As interest rates have climbed, cash offers are increasing in popularity. While luxury home buyers had used a mortgage to their benefit while rates were at historic lows throughout 2020 and 2021, higher rates are leading to more cash offers so that buyers can avoid larger interest payments.
This is one reason luxury homes seem insulated from the impacts of raising interest rates.
6. Nashville Ranks No. 98 out of 300 on Realtor.com’s Hottest Real Estate Markets
Nashville ranks number 98 out of 300 top metro areas with a ranking of slightly hot based on November 2022 data from Realtor.com. The market is expected to hold at slightly hot after leveling off from being a hot market in 2021 and early 2022.
Purchasing a Luxury Home in Middle Tennessee
The luxury home market is thriving, and you can find the home of your dreams, whether it be a primary residence or a second home. Warren Bradley Partners offers a team of real estate experts prepared to help make your dreams a reality. Contact them at 615-300-8663 or email@example.com.