$142K salary needed to afford median home price in Nashville, Realtor.com says

NASHVILLE, Tenn. (WKRN) — According to a new housing report, the first two weeks of May see the most homes for sale, but the income required to buy a home in Metro Nashville is up compared to last year. 

As the weather warms and the grass starts to grow, so does the number of homes listed for sale. 

“Not only does the calendar dictate that, but so does the weather,” said Jeff Checko, relocation director with the Ashton Real Estate Group of RE/MAX Advantage. 

Checko said the recent bump in rates due to sticky inflation numbers has changed the typical spring housing game. 

“That kind of pulled the plug on us, so to speak, with some of the momentum we were seeing in the middle part of April,” Checko explained. “In particular, our firm serves all of Greater Nashville. We have seen our average purchase price come down quite a bit in terms of the homes we are putting in contract cost.” 

Still, the money to buy a home is hefty. According to Realtor.com, the income needed to buy a median priced home in the Nashville metropolitan area — including Murfreesboro and Franklin — is $142,000 a year, which is up 7.6% over last year. Checko said the high rates are pushing buyers into lower priced homes. 

“More activity is happening at entry level and middle-income price points because interest rates affect you less. Even though they are important, they affect you less the lower the purchase price, because the impact on the payment is less given the amount of dollars times that interest rate,” he said.

If you are shopping for a home, it might be worth browsing new construction as many builders don’t want their subdivisions sitting empty, according to Checko.

“Be aggressive with builders,” he recommended. “They’re trying to do business. The only bad question is one that you don’t ask, so ask for everything — the moon and the stars — right now.” 

If rates can get back down to the 6% to 6.5% range, Checko said the housing market could move along. Unfortunately, rates are currently in the 7% to even 8% range.