That title is a mouthful, but I really want you all to understand what is happening right now in the Nashville TN real estate market so you can plan and take advantage of it. Let me introduce you to our local Middle Tennessee market, where we’ve come from, where we are, where we’re going.
A Brief History
In 2007 and 2008 the greater Nashville area felt the cosmic shift in real estate just like the rest of the US, but Nashville was resilient. The local real estate market was helped by the diversity of our local economy and resisted major turmoil. Most of the people that experienced extreme property value losses had purchased new construction in transitional areas in late 2006 and into 2007.
By early 2009 the bubble had burst and Nashville began recovering. The recovery was extremely slow and residents and real estate professionals pointed to countless indicators as to why it seemed that Nashville was drudging the bottom. The real estate market had bottomed out, but was resisting the bounce back that normally happens a bit faster when markets dipped. By early 2012 we began to see and feel a shift in the local market. Projections were made that with the election behind us, 2013 would be the bounce back year for Middle Tennessee real estate. And, my friends, they were right.
Where We Are Now
Four major indicators prove this rebound is occurring right now (and in my opinion will occur on into fall of 2014)
1. Buyer’s Are Flooding the Market
This website tracks unique visitors and typically in January and February the traffic is lower than other months, especially Spring, Summer and Fall months. January 2013 has had 7% more unique visitors than September 2012 (usually there are about 50% less).
2. Inventory Is Low
Also popular neighborhoods that have double digit annual turnover (10%+) have 60%-75% of the active listings under contract.Buyer’s are buying and inventory is shrinking.
3. Prices Are Increasing
Because of this prices have began to creep back up to meet the demand. A colleague of mine has the only home listed in a popular Franklin neighborhood and he priced the home accordingly. He received an inquiry from another agent to the effect of “what’s up with the high list price?” To which he responded, “Supply and Demand.” Sometimes it really is that simple.
One South Nashville neighborhood has seen prices increase 5% from June 2012 to January 2013. Another Franklin neighborhood is experiencing similar growth at 6.6% over the same time period.
4. Interest Rates Are Climbing
Another factor that is positively affecting the real estate market is a slight rise in interest rates. A lender told me yesterday that they are still under for on a 30-year fixed, but .5% higher than four months ago. These rising interest rates indicate a stronger market and higher consumer confidence.
So how can you benefit from this?
As a seller you need to time the swell. The spring and summer market are going to be red hot. Buyer’s will be in full force and competition will be increasing as inventory increases. Get your home in pristine condition and list it before the swell occurs. This means if you are planning to make a move in 2013 then you should be preparing your home to list it for sale in early April. That means you! Read these articles for helpful tips on how to get your home ready and call me for a consultation and an introduction to my Five Point Marketing Plan. It works.
As a buyer you need to be on the prowl now and be ready to make your offer fast. The times of mulling over a piece of real estate for weeks (even days) are behind us. Be savvy and look for that bank owned piece of real estate or that seller that still thinks we live in 2009. I hate to say it, but you have to take advantage of these things! I have databases that can help you find out how many bank owned homes are in a neighborhood and ways to determine if properties are owned by real estate trusts, absentee owners or if people have paid off home mortgages, or have lived in a property for an extended period of time. All of these situations could present an opportunity for you to get a deal. Here are some articles that might help you as a buyer.
Listings are selling the same day they are going on the market and in some cases the first few minutes (really). If you don’t believe I can put you in touch with a couple of my current buyer clients for first hand testimonies.
Remember: Timing is everything and knowledge is power in the real estate market. If you determine your real estate needs, be swift and act. Remove your emotions and understand that you are entering a commodities market where value is determined by supply and demand. Good luck!
If this article has helped you please take a minute to subscribe to this blog in the right hand column. Also send me a message using the form below if you are in the market to buy or sell. We can discuss your situation over email or a phone call.