Real Estate Trends
In many large cities, home prices have outpaced income at an incredible rate. In Miami, for example, incomes have risen 16 percent, while home prices have increased 58 percent since early 1998. Boston home prices have gone up 89 percent, while incomes have increased only 22 percent.
Even with a downturn in the real estate market looming on the horizon, home sales are still headed for another record year.
The first sector to show slowing is the high-end home market. Because of big-ticket properties, house auctions nationwide have surged.
Low interest rates are the only continuing positive trend of the housing market. Low rates average now less than 6 percent for 30-year fixed-rate loans, the lowest since the 1960s.
Nashville’s housing market is still on fire– with many real estate experts calling our market ‘hot.’
Nashville ranked 4th hottest real estate market in nation
expect home values to grow faster than their expected national rate (2.8%)
We need to keep an eye on inventory; Jeff Tucker said, an economist from Zillow. “If inventory continues to build up in Nashville it could contribute to cooling off prices and a good healthy sign for the market could lead to buyers not feeling so frantic, having to rush into purchases or wave contingencies and bring things back to a low boring pace.”
Wow, 2019 was quite a year for the U.S. housing market. Median home prices went all the way up to $316,000—a record high! Will 2020 bring more of the same results? Even during Covid?
Home Prices Are Still Rising Slowly but inventory is still very low
Home prices grew slower in 2019 (3.3%) than in 2018 (5%). And this year seems like it will be no different. In fact, real estate gurus predict that home prices will only rise by 2.8% in 2020.2 So, you’ll likely see home prices continue to creep up - but dont expect to see large increases. But it’s still a good time to buy
What do high prices mean to buyers
If you’re going to buy a home in this expensive market, you absolutely must find out how much house you can really afford. Crunch the numbers and get with your mortgage lender and figure out a monthly payment your budget can handle.
Commit to staying within that budget amount.
Mortgage Loans are changing due to Covid - For example. FHA and VA loans have new loan requirements and higher credit scores - so continue to work on your credit with a professional Loan Officer.
However, when the market begins to open back up this is expected to change.
There are three factors to consider
Most of the time with any size budget one or two of these factors will have to change.
The Majority of Home Buyers Are Still Millennials
That’s right, our final trend is about who is buying homes. And once again, millennials took the lead as the largest group (37%) of home buyers last year.
Higher rent rates in Nashville
Advertising online with social media, they love the upgrades and special unique touches,
Here are some of the top home features millennials want: laundry room (86%), hardwood front exterior (81%), patio (81%), garage storage (80%), and a walk-in pantry (79%).9 If you’re thinking of making some upgrades to your home, choosing one of those might have millennials showering you with offers when you’re ready to sell.
From what we can see, the real estate market is not going to crash.
With price growth slowing down, some folks are wondering if the housing market could collapse again. Well, it’s impossible to know for sure, but a number of factors indicate a housing crash is unlikely—as long as tariffs and trade wars don’t cause a dramatic ripple effect. But economists say we seem to be in good shape since people are spending money and new job opportunities keep popping up. In 2020 there are expected to be over 10,000 new jobs coming to Nashville
5,000 new jobs; An Executive Headquarters, Operations Center of Excellence, located in the Gulch in downtown Nashville; bringing 5,000 new executive jobs with salaries starting at $150,000 each. The new Amazon building is expected to open in 2021.
AllianceBernstein 1,050 new jobs;
Downtown headquarters is located on floors 7 through 10 at 414 Union Street in downtown Nashville with 670 new downtown jobs being added and 1,340 jobs being added to the new manufacturing and distribution center in Antioch, Tennessee.
Bridgestone is adding over 450 new corporate headquarter jobs in Antioch.
If you have kids or are looking for a home when you do have kids check out Franklin (in Williamson County 30 miles south of downtown Nashville), Mt Juliet (in Wilson County 25 miles east of Nashville) and Hendersonville (in Sumner County 40 miles northeast of Nashville). These three communities have the best public school systems and many people flock there for raising children.
If you are more interested in your commute to work, (and with our current traffic issues who isn't) we would suggest Donelson, East Nashville. Brentwood and Green Hills.
Looking for a bargain
Old Hickory, Hermitage are growing at a fast past,
Donelson is becoming very desirable because of the proximity to the air port and downtown with a lot of new commercial buildings being built and new restaurants and shops
East Nashville - East Hill neighborhood near Gallatin Pike and Trinity Lane and dickerson pike
North Nashville - Several areas that real estate experts expect to start booming in the next two to three years