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

2782 Properties
Page 1 of 232
$150,000
Subdivision: Big Sky
2
Beds
2F11/2
Baths
1,216
Sq.Ft.
2020
Year Built
1
Day on Site
2221326
MLS
NEW CONSTRUCTION Townhome Conveniently Located Close to Tennova Healthcare & Zoned for Rossview Schools - COMPLETE & Ready to Go! - All Stainless Steel Kitchen Appliances Included - Glacier Gray...
$150,000
Subdivision: Big Sky
2
Beds
2F11/2
Baths
1,216
Sq.Ft.
2020
Year Built
1
Day on Site
2221330
MLS
NEW CONSTRUCTION Townhome Conveniently Located Close to Tennova Healthcare & Zoned for Rossview Schools - COMPLETE & Ready to Go! - All Stainless Steel Kitchen Appliances Included - White Cabinetry -...
$150,000
Subdivision: Big Sky
2
Beds
2F11/2
Baths
1,216
Sq.Ft.
2020
Year Built
1
Day on Site
2221329
MLS
NEW CONSTRUCTION Townhome Conveniently Located Close to Tennova Healthcare & Zoned for Rossview Schools - COMPLETE & Ready to Go! - All Stainless Steel Kitchen Appliances Included - Stone Gray...
$569,900
Subdivision: Faulconer & Ashcraft/Mcnai
3
Beds
3F11/2
Baths
2,070
Sq.Ft.
2021
Year Built
1
Day on Site
2221332
MLS
Currently being built by E3 Construction Services, LLC! Beautiful three-story home with covered front porch, in the heart of Nashville's rapidly growing City Heights area! 3 spacious bedrooms each...
$540,000
Subdivision: Faulconer & Ashcraft/Mcnai
3
Beds
3F11/2
Baths
1,965
Sq.Ft.
2021
Year Built
1
Day on Site
2221333
MLS
Currently being built by E3 Construction Services, LLC! Beautiful three-story home with covered front porch, in the heart of Nashville's rapidly growing City Heights area! 3 spacious bedrooms each...
$280,000
Subdivision: Westwind Estates Sec 2
5
Beds
2
Baths
1,975
Sq.Ft.
1994
Year Built
1
Day on Site
2221334
MLS
No description available...
$599,900
Subdivision: City Heights
3
Beds
3F11/2
Baths
2,383
Sq.Ft.
2021
Year Built
1
Day on Site
2221335
MLS
Currently being built by E3 Construction Services, LLC in the heart of Nashville's rapidly growing City Heights area! Modern Farmhouse w/basement! Three large bedrooms plus media room! Large covered...
$489,900
Subdivision: The Maples
5
Beds
3
Baths
3,390
Sq.Ft.
2021
Year Built
1
Day on Site
2221337
MLS
Another beautiful home BEING BUILT by Four Corners like a true custom - THE OAKMONT. 10' MAIN & 9' SECOND Floor Ceiling. CUSTOM BUILT IN CLOSETS - Drop Zone By Garage, Owner's Suite Closet & Pantry....
$244,987
Subdivision: Riverview
3
Beds
2
Baths
1,785
Sq.Ft.
1938
Year Built
1
Day on Site
2221341
MLS
Remodeled home with shop. List of improvements attached to the listing. Kitchen with granite countertop and stainless appliances. Hardwood and tile floors. New plumbing and electric. A must see!...
$499,900
Subdivision: Springdale
3
Beds
2F21/2
Baths
1,611
Sq.Ft.
2020
Year Built
1
Day on Site
2221344
MLS
UNIQUE OPPORTUNITY! This home is divided into two units!! PERFECT for Multi-Generational families OR Live in one half, rent the other! The main floor consists of 2 Living/Dining areas, 2 full...
$224,900
Subdivision: Morgans Retreat
3
Beds
2
Baths
1,162
Sq.Ft.
2007
Year Built
1
Day on Site
2221346
MLS
Open Concept with 3 bedrooms and 2 baths all on 1 level. No homes directly behind you. No HOA
Open 1/24
405 Edenfield Pass Nolensville, TN 37135
$719,900
Subdivision: Telfair Ph1
5
Beds
4
Baths
3,310
Sq.Ft.
2018
Year Built
1
Day on Site
2220085
MLS
All the bells and whistles!! Former model home in Telfair! Painted white brick, luxury owners suite w shiplap, open floor plan, office downstairs w brick wall and sliding barn doors. 2nd office...

Post a Comment