Home inventory is increasing in the Nashville market, leading to a balancing of the off-kilter home sales market, according to a RE/MAX report.

Of 53 metro areas surveyed, the Nashville market saw the second-highest jump in newly listed homes from June 2021 to June 2022. Nashville recorded a 22.8-percent increase in newly listed homes, second only to the figure of the Phoenix market.

"The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers — and we're finally seeing conditions ease up," RE/MAX President and CEO Nick Bailey said in a release. "It's due partly to the rise in interest rates — although buyers are also finding solutions in ARMs, FHA products and other financing — but even more significant is the increase in listings after several years of instant sales and low inventory. Markets like Nashville and Phoenix saw an increase in new listings of over 20 percent last month, bringing new options for buyers who may have sidelined themselves in the frenzy of last year."

According to the report, June saw more home sales than any other month this year, but the month’s numbers fell short of June 2021 by nearly 18 percent. The median home sales price nationally inched up just 0.6 percent from May to June.

Separately, Zillow reported that home shoppers now have more options to choose from and more time to make decisions. That’s not exactly good news, though, as Zillow researchers found that intensifying affordability challenges were forcing buyers out of the market, leaving those who remain with more options.

Prior to recent increases in mortgage rates, housing affordability remained relatively steady, despite price increases, due to low rates. Shoppers are now seeing their buying power decrease as rising interest rates result in higher monthly payments.

In Nashville, according to Zillow, the monthly mortgage rate on a typical home in June was $2,059, nearly double the number from June 2019.

"Those who can weather this storm of rising costs are having an otherwise less stressful buying experience compared to the pandemic-fueled rush on real estate in 2021,” Zillow senior economist Jeff Tucker said. “They have more options to tour, more time to find the right house and are less likely to face a bidding war. But despite this initial move toward rebalancing, the market is still less buyer-friendly than the pre-pandemic norm in most of the country. Home seekers who are priced out today are eagerly anticipating drops in prices or mortgage rates so they can step back into the ring."