Davidson County Housing Market: Sales Fall 10% as Supply Tops 6 Months
Davidson County's third-quarter median slipped 1% to $495,000 as sales fell 10%, and September supply hit 6.46 months, the highest in the 10-county region.
Franklin, Tenn. — October 19, 2026
The Davidson County housing market posted fewer sales and a slightly lower median price in the third quarter, the first year-over-year dip in the quarter's median in five years of comparable data, according to Realtracs data compiled in a quarterly market report by Zeitlin Sotheby's International Realty.
The median sale price for single-family homes and condominiums in the county fell 1% to $495,000 in the July-through-September period from $500,000 a year earlier, according to the report. Closed sales fell 10% to 2,256 from 2,505, while average days on market held at 40. Inventory at the end of the quarter stood at 4,630 homes, down 6% from a year earlier, even as new listings rose 9% and months of supply rose 4%. The average sale price climbed to about $726,000 from about $699,000.
Davidson County housing market slows most in the middle price tier
The decline in sales was concentrated between $500,000 and $1 million, where closings fell 18% to 743 from 901, according to the report. Sales under $500,000 fell 8% to 1,153 from 1,250 and still made up 51.1% of the quarter's closings. Sales between $1 million and $2 million rose 2% to 245, and sales above $2 million edged up to 115 from 114, which helps explain why the average price rose as the median slipped.
The third-quarter median had risen each year in the report's five-year comparison, from $460,000 in 2022 to $476,000 in 2023, $485,000 in 2024 and $500,000 last year, before easing to $495,000. Average days on market climbed from 15 in 2022 to 25 in 2023, 32 in 2024 and 40 in 2025, and stayed at 40 this year.
| Davidson County, Q3 | 2025 | 2026 | Change |
|---|---|---|---|
| Median sale price | $500,000 | $495,000 | -1% |
| Closed sales | 2,505 | 2,256 | -10% |
| Average days on market | 40 | 40 | 0% |
| Closings $500,000 to $1 million | 901 | 743 | -18% |
| Closings under $500,000 | 1,250 | 1,153 | -8% |
Source: Zeitlin Sotheby's International Realty, Realtracs MLS data.
Davidson supply crosses the buyer's-market line
Monthly figures show Davidson carrying more supply than any other county in the region. The county had 6.46 months of supply in September, the highest among the 10 Middle Tennessee counties in a county-level analysis of Realtracs data by Grant Hammond, a broker with Compass RE, using an Oct. 4 report date. The regional figure was 5.41 months. Hammond's analysis treats markets under four months of supply as favoring sellers, four to six months as balanced and above six months as favoring buyers, which places Davidson past the six-month line. The average Davidson listing needed 69 days to reach a contract, he found.
Davidson's supply has run above five months all summer, at 5.69 months in June, 5.97 in July, 6.89 in August and 6.46 in September, according to Hammond's monthly reports. The county recorded 853 closings in September at a median sale price of $450,000 and an average of $642,502, down from an average of $730,085 in June, though Hammond cautioned that a single month's county average is noisy. Redfin's September analysis ranked Nashville second among big-metro buyer's markets, as Iron Hill Brief reported, and Williamson County has followed a similar path, sliding into a balanced market as its supply climbed.
Single-family homes and condos price differently
Greater Nashville Realtors, which compiles its own quarterly Realtracs counts, reported 2,717 total closings in Davidson County in the third quarter, including 2,101 single-family residential sales at a median of $520,000 and 616 condominium sales at a median of $340,000. Both medians were below the second quarter, when the association reported a residential median of $535,000 and a condo median of $350,000. The association's totals differ from the Sotheby's International Realty report because the two use different counting methods.
For buyers, more months of supply and longer waits for contracts have widened negotiating room in the county. Buyers can test what a Davidson County price means for a monthly budget with the Iron Hill Mortgage affordability calculator.
Preliminary September figures are subject to revision as agents finish entering transactions.
Sources
- Zeitlin Sotheby's International Realty, "Davidson County – Greater Nashville Area," Q3 2026 quarterly market report, Realtracs MLS data, updated Oct. 6, 2026: https://marketupdates.sothebysrealty.com/marketupdate/zeitlinsir/greater_nashville_area/davidson_county
- Grant Hammond, Compass RE, "Middle Tennessee Real Estate Market Update September 2026," Realtracs MLS data with Oct. 4 report date: https://www.granthammond.com/market-analysis/nashville-housing-market/middle-tennessee-real-estate-market-update-september-2026/
- Greater Nashville Realtors, Quarterly Home Sales Report, 2026, Realtracs data: https://www.greaternashvillerealtors.org/market-data-quarterly