How your distance to downtown Nashville hurts value
I was fortunate to get a sneak peek at a new product for Nashville housing information developed by Weiss Analytics and Inman News.
The product is called Market Intel and the information is presented in a way that is easy to understand and segment.
At first, I did not see any surprises.
For example, single family homes within 11 miles of downtown were expected to appreciate 5.2% on average over the next year. The forecast for the Nashville MSA as a whole is a 3% price increase over the next year.
Due to the congestion and the investment made in the downtown area, many people prefer to be close to the city center. So that’s to be expected.
It’s when I looked at the same data for condos that I saw this.
Condos 11+ miles from downtown Nashville were expected to increase 10.6% over the next 12 months. And those located in the city center were expected to be slightly negative over the next year.
Weiss thinks that the demand for condos downtown needs to catch up to the build rate. And the demand for condos in the suburbs is going to increase relative to the supply.
Is this forecast right?
It’s too early to say.
For the last several years, most condo buyers (and especially investors) have been focused on downtown.
If I were considering buying a condo in Nashville, then I would also take a look at areas outside of the urban core. Especially those that are built around planned communities and are close enough to commute.
When these reports become available to share, is that something that you would like to see?