Here's the Top 5 Real Estate Trends for Nashville in 2016
The most common question I get as a Real Estate Broker this time of year is “What will the Nashville Real Estate Market look like in 2016?”
That’s a great question because many folks have waited for the market to fully recover before selling their current home. And many first time homebuyers have been waiting for the right time in their personal life to finally kick the landlord to the curb.
It takes some time (both physically and mentally) to get ready to make the big move, so early preparation and good timing are key to a smooth transaction.
Whether you are thinking about buying or selling anytime soon, I would want to know what to expect in Nashville this year.
Here’s the Top 5 Real Estate Trends in Nashville for 2016!
- The interest rates will increase, but not enough to deter most buyers. A 1% increase in mortgage interest rates results in an 11% loss in purchasing power. I expect some increase in interest rates for 2016, however, I expect they will be less than 1%. Today’s buyers are more risk averse than they were a decade ago so the loss in purchasing power is less an issue for them.
- Demand will continue to drive prices, but not as much as 2015. Price increases in Nashville were especially strong in 2015. The price fade toward the end of last year is a trend that I expect we will see again in 2016, especially for the luxury market.
- New construction sales will continue to increase. 2015 brought us record levels of new starts in Nashville. In the fourth quarter, we saw builders prepare for more of the same in the new year. They will come closer, but I do not expect builders to catch up to buyer demand this year.
- Nashville Economy will continue to thrive in 2016. Barring any major national catastrophe, Nashville will be booming for years to come. The Nashville Business Journal’s Crane Watch reports a total of 132 construction cranes in Davidson County right now. These cranes equal new apartments, condos and jobs for Nashville.
- Affordable housing will become a hot topic in Nashville. Megan Barry, Nashville’s New Mayor, made Affordable Housing a major platform of her election campaign. I expect to see more cooperation between Metro and local stakeholders in redeveloping affordable housing in key areas of the city.
In the comments below, Let me know what questions you have about the Nashville Market in 2016?
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