Hotter than a snowflake in August
Nashville real estate was sizzling in October.
More than 3,300 homes sold during the month, according to the Greater Nashville Association of REALTORS. This is 10% higher (when you round up) than the same month last year.
And we’ve sold 4.5% more homes in the first 10 months of the year, than we did last year.
That’s amazing considering our inventory levels keep declining and builders are at maximum capacity.
Even if the last two months of the year are flat, we will still be ahead of 2015.
Much of this has to do with the population explosion that I wrote about recently.
And the growth projections for Nashville are not slowing down.
This is having a dramatic affect on prices. Every month in 2016 we have been hovering around the 10% mark in year over year price appreciation.
And for October 2016…[drum roll please]
13.5% higher prices in October 2016, than we had in October 2015.
While that’s an amazing number, I want to throw a little caution to the wind.
When tough times hit, we often find that the faster the prices climb, the harder they fall.
Baring any national disaster, I think we are ok for the short term.
The real estate economists that I follow expect for our next national slow down to hit around 2019. Give or take a few years.
Most of it depends on interest rates.
We should expect a slow down when it goes over 5.5%. Today, we’re no where close to that.
Don't let me forget the inventory. We currently have just under 12,000 homes for sale in the Greater Nashville Area.
This is 8.6% less inventory than we had in October 2015.
While this doesn’t look good for buyers, the decline seems to be slowing down.
If you need information on a specific neighborhood, just hit reply.
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