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Nashville remains a challenging market in which to buy a home, as multiple reports released this week found that inventory of both residences and vacant lots in the area is low.

Online marketplace Zillow found that home values nationwide rose 1.5 percent from December to January, with an annual growth rate larger than any other in the past two decades. Nashville, San Diego and Las Vegas led the way, with 2.5-percent monthly growth in home values from December to January, Zillow reported.

"Home buyers today are making bids and closing deals despite some of the most challenging conditions ever: record-few homes for sale to choose from, priced at double-digit gains from last year, financed at sharply rising mortgage rates," Jeff Tucker, senior economist at Zillow, said in a release. "It remains to be seen how long buyers can weather this storm, and how long homeowners will watch values rise before deciding to list. Neither have blinked yet. Expect another sizzling hot spring shopping season."

Inventories were down nationwide, even when accounting for typical winter drops. Active inventory is now 22 percent below the figure of a year ago and more than 42 percent lower than the mark of January 2020. Zillow largely attributed that drop to a dearth of new listings.

According to Zillow, rents in Nashville were up nearly 20 percent in the past year and home values, at an average of more than $400,000, were up nearly 29 percent in a year.

Another contributor could be the supply of single-family lots. According to housing industry advisory firm Zonda, lot supplies as calculated via the firm’s New Home Lot Supply Index were down nearly 28 percent in the past year. Nashville, Miami and Southern California led the nation with the tightest lot supply, according to Zonda.

“Constrained lot inventory remains part of the challenge when trying to get more homes built,” Ali Wolf, Zonda chief economist, said in a release. “The New Home Lot Supply Index captures today's shortage, but look out for more lots throughout 2022. Total upcoming activity ... is up 26 percent compared to last year.”