What Will the Middle TN Real Estate Market Be Like in 2018?

    Since September and October we’ve heard grumblings that Middle Tennessee real estate just can’t sustain the growth it has experienced in the past few years and we should be preparing for a bust like that we experienced in 2008. And while people have good reason to be nervous, since the home prices we’re seeing do seem familiar to what we saw about ten years ago, the data available to us continues to point to today’s prices being those that can be sustainable over the long haul. Here’s what we’re seeing:

    – At the end of December we mentioned the PwC/ULI Emerging Trends in Real Estate report that included Nashville on its top 10 real estate markets list for 2018 after surveying almost 2,000 real estate professionals. This is just one of many surveys and reports that continue to list our area as one to watch for real estate growth over the next year.

    – We have begun to see a bit of a slow down in some pocket markets within Middle Tennessee. Luxury homes in the $1 million plus category are sitting a little longer as are homes in higher-priced urban areas that are beginning to compete with new homes being built as part of revitalization efforts. However other areas are continuing to see double-digit percentage increases over 2017 and we expect that to continue through the rest of the year.

    – Mortgage rates are STILL low. Are you tired of hearing that yet? 30-year conventional mortgage rates are still hovering in the low 4% and even though that has risen slightly and steadily over the past year, the small increases aren’t enough to put a halt to the sales just yet. We may see 4.5-4.6% by the end of the year, but that still won’t slow things down much.

    – While Middle Tennessee real estate may feel expensive when comparing it to historical records, our housing market is still quite affordable when compared to larger markets like LA and DC. Nashville continues to attract buyers from out of state, whose money goes much further here in Middle Tennessee than it did in those larger cities. With an estimated 20,000 people moving here every year, this trend continues to push our average sales prices higher and higher.

    So if you’re considering buying and/or selling this year, contact our office to get the news on the latest trends that could affect when and where you buy!

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