Nashville housing market Q3, 2022 by Marqueze Williams.

Nashville housing market Q3, 2022

By Marqueze Williams

Nashville is the capital of Tennessee Valley in the United States. It is known for country music, thus the nickname Music City. In terms of population, the city has snowballed and is the 20th fastest growing MSA in the U.S. Population growth affects the real estate market because it calls for more houses to be put up.

REAL ESTATE MARKET

Nash Ville is foreseen to break a record between July and September regarding sale prices. January 2022, the median home sale value was at $400,000, but the cost escalated to $450,000 in April .

The supernova city is on a tear, and the prices are relatively affordable compared to other cities in the U.S. Over the last years, people have flooded in to escape high living costs in other states.

Real estate investors have experienced good times, more so on rental properties. The median rent for Three bedroomed houses ranges at $1985 and has increased by 10% yearly. Housing market

Since 2012, Nash Ville has been performing well in the housing market. The home values have increased by 142.8% over the last ten year. The median price listing of houses is currently at $395,882, rising 24.3% yearly. The annual appreciation rate of housing was 8.27%. Last year, however, the yearly appreciation was at 15%. In the first quarter of 2022, the housing market went a bit low at 6.26% housing appreciation. The second quarter has shown improvement, which is foreseen to continue to the third quarter of 2022. House prices are expected to go up by 27.48% next year.

INVENTORY LEVELS

Like in other states, there is an imbalance between demand and supply where the city is experiencing high demand more than the supply available.

In such conditions, the market automatically becomes a seller market, which increases home prices. Other reasons leading to a low number of houses are the high construction cost in the city, especially after the Covid 19 struck the market. However, in 2022, the homes have experienced a 12% increase in inventory levels which still cannot sustain the Nash Ville market.

COMPETITION AMONG HOME BUYERS

Competition is stiff in the market, and thus, buyers are encouraged to keep their ducks in a row. By saying so, it means having pre-approvals ready and all other documents required in home buying to increase the chances of owning a home. At the beginning of 2022, the first three months experienced low sales, and property stayed in the market for more days compared to 2021. February, for instance, homes remained in the market for 35 days. The second quarter

has indicated improvement as houses now stay for fewer days in the market, and real estate investors foresee that the trend will continue for the rest of the year. It has been fostered by the many vast numbers of buyers flooding the market daily.

RISING MORTGAGES RATES AND AFFORDABILITY

In recent years, there has been an increment in the mortgage rating. The act leads to higher monthly payments, which few buyers can afford. To some extent, it makes some buyers get out of the market. The sharp increment s in the property means that buyers need to have more money affecting their affordability. The mortgage increment trend has been evident in recent years and will continue throughout 2022.

RETURN ON INVESTMENT

Over the last ten years, Nashville has shown good returns on investments. About 46% of the houses in the city are rental occupied while 56% are owner-occupied. Rent in Nash Ville is $200 higher than in other parts of Tennessee. Most of the houses in 2022 have had a rent increase. For instance, on 11th April, a one-bedroomed place was paid $1696, recording a 5% increase. On the other hand, a studio had an increment in rent by 6%. Roughly, rental charges were $1699. Rental costs for larger apartments are higher, like in a condo. However, the rental market is expected to collapse shortly. Most people want to own their own houses to escape the rent that is reportedly skyrocketing over a short period. 8th Avenue South has the highest rental apartments, while Edgehill has the least expensive homes.

REDEVELOPMENT OPPORTUNITIES

Currently, in Nashville, areas are known for good returns if redeveloped. For instance, such places are around professional sports clubs and the east part of Nash Ville. Thus such sites will experience higher prices in buying a home and consequently renting in the better part of the year.

BOTTOMLINE

Nash Ville is proliferating and has experienced higher prices in the last ten years. Inventory levels are low, not enough for buyers leading to stiff competition among the buyers, and the trend will continue in the third quarter of the year. People intending to buy a home in Nash Ville are encouraged to do so as soon as possible due to increasing yearly inflation.