Key Takeaways
- Davidson County was a buyer’s market in August: the median price fell 4.2% to $468,432, new listings jumped 23.5%, and months of supply rose about 20% to over 6.
- Homes sat on market for 66 days—19 days longer than the national median—and closed for just 97.2% of asking price, with only 12.1% of sales going above list.
- The flood of new supply reshaped the competitive landscape: inventory rose 7.7% while closings fell 7.0%, creating the widest buyer advantage Nashville has seen in years.
Davidson County, TN Housing Market Snapshot
| Median Sale Price | Pending Sales | Active Listings | Days on Market | Sold Above List |
|---|---|---|---|---|
| $468,432 (-4.2% YoY) | 978 (-2.5% YoY) | 6,702 (+7.7% YoY) | 66 days (-3 days YoY) | 12.1% (+0.3 ppt YoY) |
Davidson County’s (i.e. Nashville’s) housing market shifted decisively in buyers’ favor in August. A 24% spike in new listings swamped demand that was already weakening, pushing months of supply past 6 and dragging prices down more than 4%. The typical home sat on market for over two months, and multiple offers were uncommon. Nashville’s post-pandemic boom has fully unwound on price, and the balance of power now rests with buyers.
Learn everything you need to know about the Davidson County, TN housing market as we head into fall, and what buyers and sellers can do to succeed.
U.S. Housing Market Snapshot
| Median Sale Price | Pending Sales | Active Listings | Days on Market | Buyer-Seller Balance |
|---|---|---|---|---|
| $398,596 (+2.2% YoY) | 336,973 (-1.3% YoY) | 1,534,918 (+2.7% YoY) | 50 days (0 days YoY) | Sellers outnumber buyers by 57.9% |
Nationally, home prices rose 2.0% and inventory grew a modest 2.7%. Davidson County moved in the opposite direction: prices fell over 4%, inventory swelled nearly 8%, and new listings jumped 24%. The county’s over 6 months of supply dwarfed the national figure of about 4, and homes took 66 days to sell versus 50 nationally. Where the U.S. market remained balanced-to-slightly-loose, Davidson County crossed firmly into buyer’s territory.
“The U.S. housing market faced some hurdles in August, as inflation and an AI-fueled economy kept mortgage rates high and weighed heavily on homebuyers, sellers, and investors,” said Chen Zhao, Redfin’s head of economics research. “Until recently, affordability and activity had been slowly improving for months, helping the market recover. But now, economic uncertainty and rising prices are keeping more people on the sidelines and slowing the market further. For buyers who need to buy, now is a great time because there’s less competition and a bit more inventory—for sellers, pricing competitively is key to attract attention.”
Davidson County Prices Dropped Over 4% While the Nation Grew
The median sale price in Davidson County fell to $468,432 in August, a 4.2% decline from a year ago, while the national median rose 2.0%. Price per square foot dropped nearly 4% to $262, confirming the correction reflected genuine value contraction rather than a mix shift toward smaller homes. At just under $470,000, Davidson County prices remain above pre-pandemic levels but have given back a meaningful portion of their 2021–2022 gains.
The typical home sold for 97.2% of its asking price, about 3% below list. Over a third of closed sales involved a price reduction, and only 12.1% went above asking. Price cuts remained common but not as widespread as in Travis County, for example. The data pointed to a market where sellers still tested higher prices but routinely adjusted downward to attract offers.
Closings Fell 7% as the Flood of New Listings Diluted Demand
Homes sold dropped 7.0% year over year in Davidson County to 869, a steeper decline than the national decline of less than 1%. Pending sales fell a more modest 2.5%, suggesting some pipeline activity remained. The median home took 66 days to go under contract, down 3 from a year ago—a marginal improvement that likely reflected more aggressive pricing by motivated sellers.
The 24% jump in new listings was the headline story on the demand side. More sellers entering the market gave buyers more choices, spreading already-limited demand across a wider inventory base. The result: fewer offers per listing, weaker competition, and less urgency. For the first time in several years, Davidson County buyers could afford to be deliberate.
Supply Climbed About 20% as New Listings Surged and Absorption Slowed
Active listings rose 7.7% year over year to 6,702, while new listings surged 23.5% to 1,575. Months of supply rose about 20% to over 6, far above the national figure of about 4. The combination of rising supply and falling sales created the most buyer-friendly conditions Davidson County has seen since at least 2019.
Nationally, inventory grew about 3%, and months of supply held at about 4. Davidson County’s divergence reflected both a release of pent-up seller activity and weakening buyer confidence. At the current pace, it would take over six months to clear available inventory. That level of slack typically leads to continued price softening, and sellers who need to move should plan accordingly.
High Tier Gained While Bottom and Luxury Prices Fell
| Price Tier | Median Price (YoY) | Sold (YoY) | DOM (YoY) | % Above List (YoY) |
|---|---|---|---|---|
| Luxury (top 5%) | $2,282,711 (-2.7%) | 220 (+20.9%) | 72 days (+4 days YoY) | 10.5% (+3.9 ppt) |
| High (65th-95th%) | $799,982 (+8.5%) | 931 (-2.4%) | 59 days (+1 day YoY) | 15.1% (+0.7 ppt) |
| Non-luxury (35th-65th%) | $471,959 (+1.1%) | 872 (-1.4%) | 63 days (+5 days YoY) | 17.7% (+1.7 ppt) |
| Starter (5th-35th%) | $331,131 (-1.3%) | 828 (+3.1%) | 63 days (+7 days YoY) | 15.5% (+0.3 ppt) |
| Bottom (bottom 5%) | $208,631 (-4.8%) | 174 (+2.4%) | 64 days (+10 days YoY) | 8.0% (-4.3 ppt) |
Redfin analysis of MLS data • Rolling three-month period (May-July 2026)
The high tier (65th–95th percentile, median $800K) posted the strongest price growth at 8.5%, though volume dipped 2%. The non-luxury tier (median $472K) saw prices inch up 1% with flat sales. Luxury homes ($2.28M median) lost 2.7% on price but saw volume jump 21%, likely reflecting opportunistic buying at discounted levels. Above-list activity in the luxury segment rose 4 percentage points.
Bottom-tier prices fell the hardest, down nearly 5%, and homes sat 64 days with above-list rates dropping over 4 percentage points. The starter tier (median $331K) saw slight price declines but days on market rose 7 days. Buyers targeting homes under $350,000 had the most leverage. The non-luxury and high tiers remained more competitive, with above-list rates between 15% and 18%.
How Buyers and Sellers Can Navigate the Davidson County, TN Housing Market
If you’re buying in Davidson County, take your time. Homes sat 66 days on average, months of supply exceeded 6, and the typical home closed below asking. Request inspections, negotiate credits, and don’t feel pressured to waive contingencies. The starter tier under $350,000 offered the strongest buyer advantages, but even in the $400,000–$800,000 range, competition was minimal.
If you’re selling, recognize that the market has shifted. New listings rose 23.5%, and your home is competing with more options than at any point in the past three years. Price to the current market: about a third of completed sales required a price cut. Invest in presentation—staging, professional photography, and minor repairs—to stand out in a crowded field. Overpricing in this environment leads to extended time on market and eventual deeper reductions.
Davidson County, TN Market Data by City
Rolling three-month period (June-August 2026). Cities with 50+ sales shown.
| City | Median Sale Price (YoY) | Sold | New List. | Active | DOM | % Above | Supply |
|---|---|---|---|---|---|---|---|
| Nashville | $475,538 (-0.5% YoY) | 2,822 | 4,305 | 8,859 | 64 | 14.6% | 5.8 |
This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. County-level data is not seasonally adjusted. Check the Redfin Data Center for additional in-depth housing market data.
