As of 2016, Nashville features one of the hottest real estate markets in the country. The city itself is thriving on many fronts. It has gained, on average, 30,000 jobs per year since 2010. Its bustling downtown entertainment scene, youthful population and strong job market have made it a top choice for recent graduates and young professionals seeking a city in which to plant roots. A thriving city means high demand, and high demand means rising prices. Since 2011, real estate prices in Nashville have soared, and inventory is perpetually low. This is a function of both the broader U.S. housing recovery and Nashville's status as a popular relocation destination.

Market Insights

The median sales price in Nashville stood at $165,000 in May 2011. As of April 2016, it was $234,000. Appreciation has been steady during the five years studied, though prices do peak each summer and then recede slightly in the fall before picking up steam again the following spring and summer. This is most likely due to sales volume being significantly higher, in some years nearly double, during the summer months. In January 2014, for example, there were 1,338 home sales in Nashville. In August of the same year, there were 2,647 homes sold. Buyers seeking the best deals should try to time their home purchases for when it is cold outside.

Nashville's rising prices and increased home sales have not been concentrated in one or two sections of the metro area. While the downtown core has seen a continuing revitalization, with new lofts, apartments and condominiums going up every year, the suburbs are also thriving.

Property and Transfer Taxes

Compared to most thriving metropolitan areas, Nashville's property taxes are low. For the Urban Services District, which includes the downtown core and most of the up-and-coming neighborhoods encircling downtown, the property tax rate is $4.516 for every $100 in tax-assessed value. For the General Services District, which includes most outlying areas, the rate is $3.924. Tax-assessed value is defined as 25% of a home's appraised value. Therefore, a home valued at the city's median of $234,000 has a tax assessed value of $58,500. Its property taxes are $2,641.81 if in the Urban Services District and $2,295.54 if in the General Services District. Assuming a 20% down payment, a homebuyer purchasing a $234,000 home in Nashville pays $212.98 in mortgage and transfer taxes.

Most Expensive Neighborhoods

Ask a longtime Nashvillian where to find the most expensive homes and he will likely point to two neighborhoods: Belle Meade and Forest Hill. As of April 2016, Belle Meade's estimated median home value according to Zillow.com was over $1.5 million. In Forest Hill, it was over $1 million. Both are established neighborhoods featuring mostly homes constructed during the 1960s and 1970s and situated on large lots with mature trees, not McMansions built in the 21st century.

The Nashville area also claims several wealthy suburbs, including Brentwood and Franklin to the south. The April 2016 median sales price in Brentwood is $485,000. In Franklin, it is $390,522. For comfortable suburban living with a more affordable price tag, Hendersonville to the north of town comprises two lakeside peninsulas, a mix of older homes and new construction, and features a median sales price of $224,000, as of April 2016.

Top Real Estate Websites

Home shoppers in Nashville enjoy an abundance of resources to assist with their search. NashvilleMLS.com allows visitors to search for homes for sale in Nashville and to sort by neighborhood, ZIP code and price range. Those who have a specific home in mind and know its MLS number can pull it up that way and view its current status and any price changes that have occurred in the last 30 days. The larger real estate websites such as Trulia.com, Zillow.com and Realtor.com are useful not only for searching specific properties but also for examining broader data and trends in the area.

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