Greater Nashville Housing Market Remains Strong
Market Strength Brings Challenges
by Kenneth Bargers, REALTOR® | January 27, 2018
The Greater Nashville area continues to be one of the hottest real estate markets in the United States. A continued strong economy pushed momentum in 2016, the values and home sales continued to increase throughout 2017 and ended the second half of 2017 as a consistent monthly housing market in the nation. Several industry and data tracking entities named Nashville among their Top 20 housing markets for 2017.
Due to the reputation of the “It City”, relocation is heavy to Middle Tennessee and with this popularity comes shortages in housing inventory. Existing-home and new construction inventory struggle to keep pace with the number of buyers. Housing inventory remained a concern throughout 2017 and forecasted to be a challenge for 2018. Corporate and company expansion of new facilities are in place for 2018 bringing employment additions to Middle Tennessee – adding additional pressure for housing availability to the already strong Greater Nashville destination. Addressing the housing inventory will be one of 2018’s priorities with the current popularity of Greater Nashville and Partnership 2020’s continued aggressive pursuit of future business placements and attractions.
Demand for housing also adds as an influence factor on the value of home prices. Increased home values in 2017 will continue in 2018 per current indicators. With increased home values also comes the challenge of home ownership affordability within segments of our population. Of course, the success of national economic guidelines and policies will contribute as a factor in the local up or downturn of our housing market.
Overall, a strong economy, attractive mortgage rates, appeal of Middle Tennessee, along with the desire of home ownership as part of the American Dream should bring another impressive year of housing market production.