According to the Nashville Business Journal, Nashville’s housing market turned a corner in August 2022. How, exactly? The once impenetrable market is suddenly seeing fewer buyers. Even with a looming recession, it’s a welcome change for hopeful home buyers who previously found themselves with the short end of the stick over the last 18 months.
In the last five years alone, Nashville home values increased by more than 85% as Music City became one of the top 10 cities in the country for inbound growth, and for-sale homes were quickly snatched off the market within 25 days or less in 2021, on average. As a result, many home buyers were either priced out completely or were caught in bidding wars with a dozen others for the same home.
Less buyers wading into the market means an overall cooling effect, which includes improved supply & demand and reasonable competition.
If you are an optimistic buyer who is eager to take advantage of the current market, a real estate lawyer can not only keep your purchase on-track but also ensure you aren’t overlooking important details in the event of an accepted offer.
With that being said, here are facts you need to know about Nashville’s current real estate market, as well as the benefits of using a real estate lawyer to navigate its ever changing ebb-and-flow.
Buying property is a major financial investment and – in Nashville’s market – you need your home’s purchase to run smoothly. Learn more about how Rochford Law & Real Estate Title can protect you from legal issues.
Nashville’s Current Supply & Demand
Experts are saying Nashville’s housing market is stabilizing for the following reasons:
- At one point, new listings totalled 1,167 in 2022, a 21.9% increase.
- Residential closings are down nearly 4% over the last year, and the housing inventory is up more than 12%.
- Homes are also staying on the market for an average of 8 weeks, meaning buyers have more time to search, find, and make offers on homes of interest.
- Interest rates have climbed to 5% and 6%.
- Investors who were buying-up affordable properties began to experience reduced profit margins, causing a downturn in quick-flip investments.
All of these factors have given buyers more breathing room than they had before. For one thing, buyers have had more time to consider their purchase rather than make an offer on a home unseen. On another note, more sellers are willing to pay money at closing to help lower their buyers’ interest rates, meaning more affordable monthly payments for buyers.
Even with these factors working in-favor of buyers, there are still risks involved. Skipping integral steps like a title search, for example, in order to keep a great deal moving forward can actually hinder a transfer of ownership, or worse, disrupt your purchase altogether.
A real estate attorney extensively investigates and verifies their client’s property – from deeds to settlements – to ensure the title is clear and eligible for next steps.
Less Competition = Reasonable Offers
In 2021 and 2022, it wasn’t uncommon for the winning bidder to have made an all-cash offer, waived the home appraisal and inspections, and offer to pay for their own title insurance. Entering the fourth quarter of 2022, this is not the current standard, and experts are encouraging home buyers to wade back into the market.
Still, buyers need to be equipped and ready to move quickly in several ways if they want to stay ahead of (or at least neck-and-neck with) other potential buyers:
- Pre-approved by a lender and with a proof-of-funds letter in-hand.
- Strive for a clean offer letter (the fewer contingencies the better).
- Ready to pay average or higher-than-average earnest money.
- Aware of appraisal and inspection fees, mortgage insurance, and closing costs, including transfer taxes.
A real estate attorney not only helps provide their client with an competitive edge but also advocates for their client’s best interests. This includes their client’s dealings with sellers as well as lenders.
Rochford Law & Real Estate Title is here to help you with your real estate and title services needs. We pride ourselves on offering outstanding, ethical counsel and representation. Contact us today.
