Nashville as a city is vibrant with opportunity. The economy in Nashville and surrounding cities is booming, and as a result, the areas are seeing an upswing in the housing market. Many businesses and individuals are moving in to take advantage of the amenities the city has to offer. Good weather, favorable taxing, and an improved quality of life means houses are being snatched off the market at a record pace. Moreover, housing experts are expecting the trend to continue throughout the rest of the year.
Nashville Real Estate Market is Booming
For the past couple of years, housing market in Nashville has skyrocketed. Your typical home now sells for around $220,000, which is up 12.5% from last year. Many experts contribute the success to the disproportion of the supply to demand. With so many individuals and families moving here on a daily basis, many cannot find housing because there isn't any inventory. A house in Nashville is usually on the market for around 60 days. This time includes the selling of the home and the close. That is on average, three weeks faster than any other city in the nation. What does this mean for the market? For starters, it can improve the appreciation of your home.
In a recent article, Zillow's Senior Economist, Skylar Olsen said, "At the whole, inventory remains very limited. Nashville home values are still growing in the double digits just like you have for the past twenty consecutive months in terms of seeing annual appreciation you know above 10% that's very strong, very aggressive. Into the next year, we do expect things to slow down, but you will still be in one of the hottest housing markets across the country so don't expect things to be slowing down too significantly."
For the rest of 2018, buyers can expect to continue to participate in a bidding war if they are looking for property in the Nashville area. While $220,000 may seem like a lot to some, the area is still considered one of the more affordable cities in the nation when you compare it to areas like San Jose where the average home is $900,000. Researchers are saying places like Nashville, Phoenix, and Kansas City are growing rapidly but still on the lower end in market price.
Why the Move to Nashville?
For many Nashville residents, the sudden interest in the area is perplexing. Proud to call Music City home, it has not made it on too many Top 10 lists. Besides becoming a hot destination for bachelorette parties, what is the appeal Nashville is bringing? Individuals may find that the cost of living is substantially lower than other areas in the country. As of December 2017, Nashville was at a 72% where other places like New York City where at 100%. For many businesses, Tennessee is a pro-business state providing a friendly tax environment and easy to comply with local regulations. Additionally, the option to do business on a national or international scale is easier with direct flights to and from Nashville's airport.
The best incentive is the pool of highly-educated individuals they have to choose from and the area itself is attractive to entice workers to transfer. With access to higher education, good weather, a low cost of living, and premier healthcare systems it is possible for individuals and their families to lead a better quality of life.
Casey Brown, Co-founder of Reliant Realty ERA said in an article, "Middle Tennessee is a unique and desirable area of the country to call home for lots of reasons... Looking ahead, local governance and leadership will continue to be key in maintaining the growth and prosperity we have come to enjoy in our markets."
Are you buying or selling a home? We’re here to help make sure your best interests are at the front of every real estate transaction. Contact Rochford Law & Real Estate Title for more information.