This is what the last 3 recessions tell us about Nashville


This is how Nashville survived the last 3 recessionsIt’s hard to forget the Great Recession.  

I often refer to it as the Mortgage Crisis, because that was the impetus of our downfall and part of the delay in the rebound.  

The banks went from selling mortgages to everyone, to shutting down the supply of financing overnight. Since the housing market is 20% of our Nation’s GDP, it was a huge hit to the economy.  

Here’s what happened in Nashville.  

From the peak in 2007 to the trough in 2009, the median sales price decreased from $184,000 to a low of $165,995, or a 9.8% drop in median price.   

Over that same time period, the number of home sales dropped in half, mostly due to limited lending.  It was like watching a train wreck in slow motion, it took two years to hit bottom and then four more years to fully recover in price.

The truth is we were very fortunate that Nashville’s vibrant economy kept us in a much better position than the rest of the country which averaged a 33% drop in value.   

Some places have never fully recovered.  

Most economists do not expect anything like the last recession because one-fifth of our economy isn’t backed by junk mortgages and credit default swaps.

They expect it to be more similar to the traditional recession.

In 2000-2001, we had the dot-com bubble burst along with 9/11.  During that recession, home sales in Nashville increased from 24,811 to 26,556, or about 7%.  And median home prices over the same time period increased by 2%.  

That one sounds more like a bump in the road than a crisis.  

In 1990, we experienced a recession due to the rising price of oil, Operation Desert Storm, and a weak Fed policy.  

Information on Nashville median home prices is not available for this time period. However, I was able to check home sales which increased 4% during the 1990 recession.  I would expect that the effect on prices would have been similar.  

I’m saying all this as a cautionary tale for those who are waiting on the next recession to jump in.  

I understand what you are feeling, but the numbers don’t add up. It’s possible that Nashville escapes the brunt of the next recession too.  And that our prices continue to improve.

With rates near all-time lows again, there might not be a better time to buy than now.  

Whether you agree with me or not, send a message and let me know your thoughts on Nashville. 

To get a pdf version of this report: http://bit.ly/NashTN3

4675 Properties
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2531081
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Pick from your choice of a 2 or 3BR Townhome with finishes that exceed expectations-Open Concept, Granite, Hardwood, Tile, and more. Minutes to Golf, Old Hickory Lake, Airport, Shopping and more....
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This condo is in a great location close to the interstate and shopping only 15 minutes to Downtown restaurants and Live music. The seller recently installed new LVP throughout the whole house. If you...
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Beautiful townhome (Newport Plan), well maintained end unit with front Porch in Durham Farms. 3 bedrooms, 2.5 bathrooms, Gas stove, Hardwood Floors, Tankless Water heater, attached rear entry garage...
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Last phase in Kingman Downs!! St Claire II C. 4 bed 3 bath. Gorgeous gourmet kitchen with painted kitchen cabinets, double ovens, electric cooktop. Quartz counter tops, upgraded cabinet pulls....
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Welcome to Westfield! Brand new Magnolia Plan with private office down and 3 bedrooms up ! Move Immediately. 4 side brick homes with impressive included features. Let our preferred lender help you...
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Beautiful two bedroom two and half bathroom townhome within 40 minutes of Nashville. Featuring wood floors downstairs, granite countertops, stainless steel appliances, and covered porches on the...
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2027 Blackstone Drive Hendersonville,  TN 37075
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Prestigious Gated Community with Pool, Clubhouse & Walking Trails Next Door to Bluegrass Yacht & Country Club. 20 Minutes North of Nashville. 5 Minutes To The Lake. 4 Bed 3.4 Bath. Private Courtyard...
1
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2531116
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Welcome to high rise living in downtown Nashville! The Cumberland offers wonderful amenities in the heart of one of the most vibrant and exciting cities in the world. This FULLY RENOVATED unit...
3
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Small quaint home surrounded by mature shade trees and a fully fenced yard! No HOA! Great price in Wilson County! Home also has a carport and a storage shed. Nice long driveway to accommodate...

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