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When's the best time to buy a house in Tennessee? It all comes down to your priorities.
In recent years, listing prices for homes in Tennessee were lowest in January. On average, homes were $36,432 less expensive. While in October — the month with the highest prices — the listing prices were $28,632 more than the annual average.
Mortgage rates, on the other hand, were lowest in December. But with interest rates on the rise, it pays to explore your options with a trusted mortgage provider to make sure you get the best rate possible.
Read on to find out which time of year will give you the most options and the biggest savings when buying a house in Tennessee.
Ready to buy a house in Tennessee? It's important to connect with an experienced realtor who understands the local market. Economic conditions in Tennessee can change rapidly, and a great agent will keep you up to date on when and where to buy.
If you're looking for a qualified local realtor, we recommend using a free service like Semya-Moya. Clever matches you with top agents from trusted brands like RE/MAX and Keller Williams.
Interview as many agents as you'd like until you find the perfect fit, or walk away at any time with no obligation. Add your zip code below to request hand-picked agent matches today!
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The best time to buy a house in Tennessee
The best time to buy a home in Tennessee is during the post-holiday winter months, if you're looking for the best bargain.
In January, sellers are often highly motivated to sell, even if they have to sell for a lower price. That's because homes tend to linger on the market longest in January, tallying just over eight days longer than the yearlong average. Sellers know that the longer their property is on the market, the worse their chances of selling. And desperate sellers lead to more deals for buyers.
The next month, in February, is the time of year when homes sell for their lowest average price. Homes sell for about 6.7% less than the yearlong average. It's likely no coincidence that the month with the lowest closing prices follows the month with the longest time on the market; after a sluggish January, sellers tend to be very open to negotiating in February.
While these are general rules of thumb, it's important to remember that price trends can vary from city to city — and there may even be anomalies within certain neighborhoods. The best way to find a home in your target market is to connect with a local realtor. They'll help you navigate the ins and outs of your market and find the best time to buy a house in Tennessee.
The best places to buy a home in Tennessee
Home to the University of Tennessee, Knoxville has one of the lowest unemployment rates in the state, as well as a cost of living well below the national average. Homes are affordable here, with median home values about 20% lower than the national average. There's also significant potential to invest in rental properties, thanks to the university.
Nashville is an affordable place to live, though its home values are higher than the national average (the median home value in Nashville is just over $236,000). The area continues to grow rapidly, aided by its booming tourism industry and its prestige as the world capital of country music.
Memphis is the largest city on the Mississippi River and home to three Fortune 500 companies. Its nightlife is well known, as is its barbecue, and it's one of the most affordable big cities in the country. Median home values are lower than the national average, though its crime rate is moderately higher than average.
Chattanooga is a small city that's growing fast. Home values and median household income are lower than the national averages, but the cost of living is even lower. Boasting fantastic green spaces, parks, and a world-class aquarium, Chattanooga is one of the best kept secrets in Tennessee.
Murfreesboro is the only city on this list with a median household income that's higher than the national average. Median home values are also higher than average. Home to Middle Tennessee State University, this city's a great choice for investing in rental properties or for settling down in an intimate but cosmopolitan midsize city.
Four ways to get a great deal on a home in Tennessee
1. Find a great Tennessee real estate agent
Unless you're a real estate expert, you'll need an experienced local real estate agent to help you navigate the market in Tennessee. With their help, you can house hunt, make offers, and negotiate with confidence.
2. Determine what you need and want in a house
When house hunting, you'll likely have a lot of options to choose from. It's up to you and your agent to narrow them down. And you can't do that until you decide what, exactly, you're looking for in your new home.
Do you want a pool? Proximity to parks and green space? What's your max budget? The sooner you decide on factors like these, the sooner your agent can find homes that fit your criteria.
3. Find a lender and secure financing
Unless you plan to buy your home with cash, you'll need to apply for a mortgage. For most home buyers in Tennessee, interest rate is one of the biggest factors when choosing a lender. Doing some upfront research and comparing options to find the best rate could save you tens of thousands of dollars over the life of your loan.
For example, in Tennessee a typical house is worth $201,000. Assuming a 20% down payment, if you took out a 30-year mortgage for 3.5%, your monthly payment would be $717. But if you shopped around and found a 3% mortgage, your monthly payment would drop to about $678.
4. Negotiate for the best possible price
Once you find a property you want to make an offer on, your real estate agent will help you determine how much to offer. They'll make sure you enter negotiations in the strongest possible position.
Your agent has insight on how much a similar house sold for the previous week, month, or even year. They know if the seller is motivated to complete a quick sale or dug in for the long haul, and they know all the possible conditions (like tax liens and lead paint) that could help you bring the price down. Your agent will read the specific situation and react accordingly.
If you're looking for a realtor, Clever can connect you with the top buyer's agents in your area for a free, no-obligation consultation.
Fill out our online form, and a Clever representative will reach out to get the process started and answer any questions.
Finding a great local realtor is the first step in making your home buying dreams a reality. Our free service matches you with top agents from trusted brands like Keller Williams and RE/MAX.
Enter your zip code to request hand-picked agent matches in minutes. Compare your options until you find the perfect fit, or walk away with no obligation. Try Clever's free service today!
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