Here is some good new, with a little bad news about gas prices, just announced via CNN:
"The Dow on Tuesday closed above 13,000 for the first time since May 2008 after a 25-point gain on lower crude prices and a strong consumer report.
While the 13,000 level is not considered technically significant, it is a psychological milestone.
Investors have been keeping a close watch on the oil market, where crude futures rose almost 9% in seven consecutive days, settling at a nine-month high above $109 a barrel Friday, amid concerns about increased tensions between Iran and Western powers.
The rise in oil prices has translated into higher gas prices, with the national average rising for 21 straight days."
Nashville Real Estate Values Will Rise
The good news is the economic indicators are looking like they will start to positively affecting the consumer confidence index and that means people will be more confident about their future and job security which means that they will start to spend more. More spending means more demand for products which means production has to start to increase. With increased production comes the demand for more labor and so jobs are created. As more people have more money to spend then the demand for goods and services increases even more.
Now those people with a better feeling about the economy and the their job security, or they have anew job, can start looking at buying the big ticket items such as cars and finally real estate.
As the demand for homes in Nashville starts to increase we will start seeing the sales start to rise in numbers which will then reduce the supply of homes on the market.
Supply and Demand of Nashville Homes
As the supply of homes decreases and the demand for homes increases, due to rise in consumer confidence and the ability of people to qualify for mortgages, then the prices of homes will start to increase as sellers realize that there will be more than offer on their home. Buyers will start to fight over the homes that have the best curb appeal and are priced correctly.
As the talk of multiple offers starts to spread around the real estate community the buyers will start to get the feedback that there homes they are interested in will also be of interest to other buyers. This means that the home won't be sitting on the market for the next six months...and that means the buyers will have to make an offer closer to list price.
As the homes start to sell then the closing price will reflect the demand and will start to push the comparable homes upwards. Now with rising prices for homes the new listings will start to try and take advantage of the revived real estate market and the list prices will start to creep up.
A Sellers Market
As the demand increase, and the sales increase, so will the desire for people to get on the real estate bandwagon, and eventually the market for homes will turn from a buyers market to a sellers market and right now all the signs point to a real estate value recovery!!!
The Ashton Real Estate Group of RE/MAX Advantage
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