Home Price Analysis for Nashville Region
The Research Division of the National Association of Realtors© has declared that there are few concerns about a price bubble or a large correction given the highly affordable conditions in the Nashville real estate region – particularly in relation to other large metro markets. Excerpts from their report:
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-Job gains in Nashville have been respectable in the last five years. A total 36,000 jobs were added during that time. Many new job holders seek their own housing units.
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-The Nashville region added 69,300 new housing units, of which 59,100 were single family units.
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-If history is a guide, the robust job gains of 17,700 net new jobs in Nashville the past 12 months will keep home prices from falling.
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-Home prices have underperformed in relation to the country as a whole. So there is an opportunity for a measurable "catch-up” effect in Nashville real estate in the coming years.
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-The ratio of price-to-income is in a comfortable range. By this measure, local home prices are underpriced.
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-Baby boomers are in their peak earning years and have been active in purchasing second homes, which many consider as their future retirement homes. The baby-boomer impact will continue for another 10 to 15 years and the southern markets will benefit from the migration trend into these
regions.
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-Even in the unlikely event of prices declining by 5%, most Nashville homeowners will maintain sizable equity build-up in their homes.
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-A likely scenario is for Nashville home prices to rise, though at a much lower rate than in recent past years.
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-Home price declines are very rare. In fact, the national median home price has not declined since the Great Depression of the 1930s. Stock market collapses, OPEC oil crunch, economic recessions, and even wars have not negatively impacted national home prices since the 1930s.
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-There have been few times when local prices declined. In nearly all these cases, the price declines were accompanied by sharp prolonged job losses. It is difficult to foresee a price decline in a job creating economy.
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-Homes trade far less frequently than financial assets (about one home sale every 7 to 10 years for most homeowners). There are also larger transaction costs associated with selling a home due to the lengthy careful examination demanded by home buyers and sellers. Therefore, home prices are not prone to fluctuations as in the stock market.
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For more details, visit the National Association of Realtors (NAR) ‘Home Price Analysis for Nashville Region’ at: http://www.realtor.org/Research.nsf/files/06TNNashville.pdf/$FILE/06TNNashville.pdf
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Exit Realty Diversified is dedicated to serving the needs of discriminating Nashville real estate buyers and sellers.
We feel the key to great service is our ability to listen, to really hear our client’s needs and wants. With our knowledge of the Nashville real estate market, we bring enthusiasm, teamwork and experience you can trust. Exit Realty Diversified, conveniently located minutes from I-440 in the Belle Meade area of West Nashville, will handle all the complexities, and make your real estate transaction as easy and pleasant as possible. It is integrity and commitment that get the job done.
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