by TJ AndersonThis prediction from Dwell magazine, from late last year, just made its way into my Facebook feed: “Step Aside, Subway Tile — Penny Tile Is the New Classic.” Penny tile,
Nashville Real Estate Will Likely Continue To Be Hot Into 2020
by TJ Anderson
If you spent any part of 2016 in a state even resembling consciousness, this is no news you to: It was a very busy year for Nashville real estate.
We can credit any number of things for that banner year — our city’s nation-leading job growth rate in key industries; its declining unemployment rate (for November 2016, our area was at 3.6 percent, compared to a national 4.4 percent); its still-rising cultural cachet. Whatever inspired it (and it was surely a mix of all that, and other factors), it was estimated in 2016 that between 80 and 100 people moved to Nashville every day. That’s a lot of heads, and a lot of housing needs.
As the year wraps up, we usually see a bit of a slowdown in listings and closings — as people start settling in for the cold months and gearing up for the holidays, selling and buying a home often gets put on the back burner for spring. So we could’ve expected the fourth-quarter Middle Tennessee home sales numbers to show a bit of a dip. Not so, though — according to the Greater Nashville REALTORS®, it was a particularly strong quarter, with 3,280 closings in December alone — almost a 3 percent increase from 2015.
As a little bit of comparison, the third quarter of our very-good year was solid too, but only up .8 percent from the previous year.
“According to the data we have available to us, the last quarter of 2016 was the strongest fourth quarter for home sales our region has experienced,” Greater Nashville REALTORS President Scott Troxel said in a release. “In terms of the market as a whole, it was the best Greater Nashville has seen in a decade.”
I believe it — we had an incredibly busy year at TJ Anderson Homes, and everyone on our team felt beyond fortunate to be able to work with a broad array of sellers and buyers from across the region, whether that meant helping a growing family sell their cozy East Nashville cottage to grab a bigger place in Mount Juliet, or walking a first-time buyer through a Germantown condo purchase. We made memories this year that underlined why and how much we love what we do.
By all accounts, 2017 won’t be any less eventful on the Nashville real estate front. Late last week I was reading in Business Insider about “The 10 hottest housing markets for 2017,” and right there at No. 1: Nashville, with a forecasted home value appreciation of 4.3 percent, compared to a national average of 3 percent.
The down news in Nashville real estate, if there’s any to be found, remains on the inventory front. We’re still looking at fewer listings than Nashville-area home buyers might like, with inventory in the area at the end of December, 2016 at 9,901, almost a thousand listings down from December 2015’s figure of 10,846.
“Inventory will continue to plague Nashville’s market, as well as many other markets across the country,” Troxel said Monday. “Working with a real estate professional, a Realtor, will be a marked advantage to consumers in search of the right property.”
I might be biased, but I have to agree there — it’s key to have someone on your home-buying team who knows the market and how to navigate it when things are particularly hot, and I’d say that even if you didn’t choose to work with TJ Anderson Homes. An experienced, knowledgeable Realtor will not only help you find the right place to bid on, but get you across the finish line to closing (which, ultimately, is the biggest challenge in a seller’s market).
If this hot-market intensity has you a bit paralyzed, I don’t have much to sooth you with — forecasters are seeing this busy stretch hanging around another three years at least. Edsel Charles, the chairman of Franklin’s MarketGraphics Research Group Inc., told WPLN in December that he sees the market continuing the upswing, then dipping a little, and rising back up until May of 2020. And his firm has a solid track record — Charles notes that they predicted the Great Recession almost a decade in advance.
His advice: “I think if you’re waiting to buy a house, I think you should have bought it last month.”
I can’t fight the fact that it’s a busy market, but I can help make the home-buying process less stressful, by giving you the best info I can, and being a dedicated advocate. Have questions about selling or buying a home in the Nashville area, or what we do/how we do it at TJ Anderson Homes? I’m always eager to chat. Give me a call or send me an email, and let’s dig in.
TJ Anderson is a Nashville Realtor with Benchmark Realty who's helped countless clients both buy a home and sell a home in Nashville, Tennessee. He blogs about Nashville regularly, from Nashville-area....
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