With the beginning of the year 2021, many people have high hopes for a better and more prosperous housing market through the US. Knowing how the market evolves in certain areas could open new doors for investment opportunities. Cities experiencing slow and steady growth in the past year will most likely maintain this trend. On the other hand, some areas might have experienced a surge in home sales and prices due to the pandemic, and it is unlikely that this trend will continue after things settle down.
One thing is sure, some of the hottest housing markets in the US will remain a viable option throughout the year 2021. Among these areas, we have the booming city of Nashville. Tennessee’s capital is one of the places where the housing market is thriving, and the forecast for 2021 looks very promising in terms of real estate.
If the thought of buying a home or an investment property in Nashville has ever crossed your mind, this might be the perfect time for you to do so. If you want to know how the market will perform in the next month, here is a bit of insight into Nashville TN’s real estate market and the forecast for 2021.
Even though the pandemic led to an economic slowdown, the housing demand in Nashville remains high. About 100 new residents are added daily to Nashville’s population, which increases the need for rental properties. Across the country, we have witnessed people moving from the big cities to the suburbs. A similar trend can be seen in Nashville TN, as the housing market is experiencing an influx of buyers from larger markets such as California, New York, or Seattle.
Another factor that might point towards a thriving real estate market in 2021 is the fact that Tennessee is one of seven states that doesn’t have an income tax. On the other hand, it is one out of two states that don’t collect tax on earned income. This increases the flux of out-of-state homebuyers, and with increased demand and low inventory, home prices go up.
Increased home prices might not be good news for investors, but it is excellent from the home seller’s perspective. Homebuyers benefit from all-time low-interest rates, making things a bit easier in a seller’s market. Nashville provides its residents with the perfect balance between quality of life and relative affordability compared to other cities of its size. For many real estate investors, this is the ideal place to invest in a house.
Another year has gone by, and we can look back to see Nashville’s evolution of the real estate market over the year 2020 and the current standings. As of October 2020, Nashville Metropolitan Area’s housing market has experienced a total amount of 4,364 closings, from which 3,535 were residential. About 3,819 homes were pending sales, and according to the previous year results, the housing market has experienced tremendous growth.
With an average sale price of about $350,000 for homes, the prices have gone up by about 16% from last year. According to Redfin, the price per square foot went up by about 11%, and it is currently standing at around $200. From 2019 to 2020, the sale activity has increased by about 17%, and Nashville homes sell in approximately 40 days.
At the end of 2020, the Nashville Metropolitan Area’s housing market has experienced an increase of about 20% in overall sales compared to the previous year. Will this growing trend continue in 2021? Will it remain constant, or is the housing market in the area going to regress? Let’s find out what the experts say!
As Zillow records them, price trends indicate that the home value in Nashville TN has appreciated by nearly 92% over the past years. Since 2021, Nashville’s home value has gone up from $155,000 to almost $300,000, making the city one of the best markets for long term investments.
The real estate market in Nashville TN is a seller’s market, and the limited supply of homes is pushing the price even higher. In such a competitive market, homes sell quicker, and prices are getting higher by the day, which benefits any home sellers in the area. Even though we are experiencing an increase of 10% in home prices over the past year, they are expected to rise even higher with the housing market’s current situation.
Homebuyers in Nashville TN shouldn’t expect any relief, and they might have to move quickly to get the deal. On the other hand, the housing market favors home sellers, and NeighborhoodScout records similar growth. Reports show that over the last ten years, the real estate of Nashville TN has appreciated by about 90%, and the annual appreciation rate was close to 6%.
All these figures place Nashville on the top 10% list of cities with the highest real estate appreciation. During the last year, Nashville’s appreciation rate is close to 5%, and the previous quarter has registered an appreciation of about 1.5%. Results indicate a continuous growth until this point, and the region’s real estate market is expected to increase by about 7% in 2021. If those predictions are accurate, a real estate investment in Nashville TN will yield a ROI anywhere between 6 - 7%.
Over the past few years, Nashville, TN’s booming real estate market opened new doors for investment opportunities. There is no surprise that so many real estate agents in Nashville TN have experienced an increase in activity as more people decide to relocate to the area. Nashville’s real estate market’s current trends point towards a growing trend in 2021, which is good news for investors. With the underlying facts and reports that suggest a housing market growth, many investors seize the opportunity to expand their investment portfolio with investment properties in one of the most promising real estate markets in the US.
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