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

5614 Properties
Page 1 of 468
4
Beds
3F11/2
Baths
3,684
Sq.Ft.
2020
Year Built
1
Days on Site
2155033
MLS
The Jamison Plan with a Sunroom!! This 4 bedroom 3 1/2 bath plan with covered front and rear porches. Includes Master on Main with huge open living concept, tiled ceramic shower, oversized bedrooms...
$249,900
Subdivision: Mooreland
3
Beds
2F11/2
Baths
1,625
Sq.Ft.
2020
Year Built
1
Days on Site
2155035
MLS
Renovated, Home is built in 1957 and has passed all the codes requirements!!!!! Almost EVERYTHING has been redone. Roof, Kitchen, Wiring, plumbing, paint, floor, windows and much more!!!!! 3...
$259,900
Subdivision: 3413 Old Anderson Rd
3
Beds
2F11/2
Baths
1,490
Sq.Ft.
2020
Year Built
1
Days on Site
2155036
MLS
High quality new construction right by the lake. 9 ft ceilings with an open floor plan, Beautiful large balcony with an access from the master bedroom, 2 car garage, high quality kitchen cabinets...
3
Beds
2
Baths
1,168
Sq.Ft.
1974
Year Built
1
Days on Site
2155037
MLS
CHECK OUT THIS CLEAN 3 BEDROOM 2 BATH HOME LOCATED ONLY 5 MINUTES TO RT 65, 10 MIN TO FRANKLIN KY. NEW HVAC UNIT, ROOF ABOUT 3 YEARS OLD, 24X24 GARAGE PLUS 10X24 CARPORT. WITH 110V AND 220V...
$325,000
Subdivision: Madison Summit
3
Beds
2F11/2
Baths
2,420
Sq.Ft.
2011
Year Built
2
Days on Site
2154552
MLS
This one owner home is unique in part due to the private courtyard off the Florida Room and the custom stone and rod iron fence enclosing it and backs up to a wooded lot. Custom book shelves anchor...
$436,000
Subdivision: Jagels Property
3
Beds
2
Baths
2,182
Sq.Ft.
1965
Year Built
2
Days on Site
2154894
MLS
Spectacular! You ll love relaxing in the Cabana by the In-Ground pool with entertainment system or the screened patio, this home also includes covered parking for your boat or RV plus a detached...
3
Beds
1F11/2
Baths
1,500
Sq.Ft.
1959
Year Built
2
Days on Site
2127477
MLS
Home has massive metal storage shed, two-car open face garage/carport (could be turned into a full garage setting with a little work), New Appliances, new roof, Fresh Paint, New flooring, New Carpet,...
Open 6/7
2079 Lequire Ln Spring Hill, TN 37174
$399,900
Subdivision: Wades Grove Sec 1
4
Beds
2F11/2
Baths
2,587
Sq.Ft.
2006
Year Built
2
Days on Site
2154898
MLS
Beautifully updated home with soaring vaulted ceilings, shiplap kitchen bar, keeping room off kitchen, two fireplaces, fresh paint! Master down with 3 beds up (4th bedroom - 18X13 - could be bonus...
$290,000
Subdivision: Westdale
3
Beds
1
Baths
2,003
Sq.Ft.
1945
Year Built
2
Days on Site
2154598
MLS
All offers to be submitted by 4pm Monday June 1.House on .32 acre is rehab, or teardown. Priced for land value. Great location. (Also selling lot next door MLS 2154638, .23 acre available for sale,...
$286,500
Subdivision: Hamilton Run
3
Beds
2F11/2
Baths
1,989
Sq.Ft.
2019
Year Built
2
Days on Site
2154900
MLS
House is less than 2 years old and still have warranties in place and transferrable. Beautiful home and ready to move it. Bar Top in Kitchen with Granite Counter-tops, Kitchen Island and Stainless...
$306,000
Subdivision: Forest Hills Est Sec Vi
4
Beds
3
Baths
2,375
Sq.Ft.
1973
Year Built
2
Days on Site
2154901
MLS
Beautifully updated 4 bed, 3 bath home in a quiet, centrally located neighborhood. Kitchen has been updated with granite counter tops, tile backsplash, and custom cabinet storage. Bathrooms have been...
$515,000
Subdivision: Fairvue Plantation Ph 18
3
Beds
3F11/2
Baths
3,408
Sq.Ft.
2011
Year Built
2
Days on Site
2154908
MLS
Starting with the wide open floor plan, to the huge granite topped island in the kitchen, the wine bar in the butler's pantry, and the cozy covered porch, this home is perfect for entertaining. The...

Post a Comment