The Middle Tennesse area was an ideal housing market for buyers in 2019, but will the trend continue into the new year? Although housing prices rose 2.0% in 2019, the housing costs are still below what other popular areas are in the southeast and the housing demand is low enough to allow for the ability to find desirable homes without competition raising the asking price.
Housing prices will continue to rise
According to Zillow, homes in Nashville saw a 2.0% increase in home value, and the surrounding middle Tennessee area saw similar price increases. Zillow also predicts a rise in home value for 2020, but at a much slower rate of 0.7%. The economy in most middle Tennessee cities has thrived the past several years, which is largely responsible for the increase in home value. Despite the price increase for homes, middle Tennessee is still a favorable buyer’s market when compared to other highly populated areas.
The demand for homes will increase
Nashville has one of the fastest-growing population rates in the country, and on average more than 100 people are moving to the middle Tennessee area each day. While this indicates a strong economy and a wealth of desirable job opportunities, it does increase the demand for homes, which will likely create competition for ideal homes in the area. Due to this, home buyers should be an opportunist when they see a good offer as homes are not likely to stay on the market nearly as long as they have in previous years.
30-year rates will stay below the national average
The lower the rate the less the homeowner has to pay on interest for the home purchase price. 30-year fixed mortgage rates in middle Tenessee have consistently stayed below the national average the past several years, and the trend will likely continue in 2020. The current 30-year fixed-rate in Nashville is 3.75%, which is below the national average of 3.99%. The 15-year mortgage rate is also below the national average. However, while this trend will likely last for the majority of 2020, it will not stay this way forever. Prospective homeowners should consider purchasing while mortgage rates are still low in middle Tennessee.
The middle Tennessee area is still a buyer’s market
The housing outlook in middle Tennessee for 2020 is promising due to affordable housing costs, less current demand than other populated areas in the southeast and a thriving economy. However, the population will continue to increase at a rapid rate and home value will continue to rise.
Although conditions are favorable for those who are looking to purchase a home in middle Tennesse at the moment, there may come a time within the next couple of years in which the supply of desirable homes has a hard time keeping up with the demand, leading to increased prices and more of a seller’s market. Subsequently, it is best to purchase early in 2020 to ensure a return on your home investment.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129