The real estate market in Middle Tennessee is obviously hot. If homes don’t sell before they hit the MLS, we’re seeing multiple offers, many of them cash, within the first week homes are made available. This seems to be great news for sellers, but what about for first-time homebuyers?
Last year’s closings surpassed those of 2007 which had been the highest Nashville (and most of the country) had ever seen. What happened next in 2007 is what many first-time homebuyers are fearful of happening again in Nashville: the market tanked; foreclosures were at an all-time high; housing prices dropped and people lost a lot of money if they were lucky enough to not have to foreclose or short sale. The market took another 8 years to recover.
So we seem to be seeing a similar thing happening here in 2017. Zillow named Nashville as its hottest city to move to this year. Experts estimate that up to 100 people move to Nashville every day and that doesn’t seem to be slowing down anytime soon.
First-time buyers may be fearful of buying in such a high market and fear a crash, especially when purchasing homes that they don’t plan to live in for more than a few years. Houses below $200,000 are hard to come by with the median home price rising to almost $260,000 last year. Houses are high, land is high, and affordable housing is rare.
Unlike 2007, this doesn’t appear to be a housing bubble that will burst. Lenders are still maintaining strong requirements to borrow and the overall economy seems to support the high housing prices, especially here in Middle Tennessee.
So what are first-time homebuyers to do?
First, consult a lender to know exactly what you can afford before you even start looking. Secondly, find a real estate agent who has experience in your price range. An amazing realtor who buys and sells million-dollar home won’t be of much help to someone looking for homes under $250K. Lastly, be flexible. When searching for an affordable home you may realize that you can’t have everything for the price that you want. You may have to buy further out of the city, buy less square footage, or purchase a fixer upper with more work than you wanted.
Contact us today if you are a first-time homebuyer looking to buy in Nashville this year!