For the first time last year, closings in the Nashville area surpassed sales from 2007, a time in which the market was thriving just before the crash. Nashville’s crazy housing market captured a lot of headlines last year, and a strong start to 2017 is already painting a favorable picture for the year ahead.
But are rapidly rising home prices keeping some would-be buyers from ultimately purchasing a home in Nashville? Well, if you’re truly in a position to buy and also prefer buying over renting, they shouldn’t.
Unlike the market conditions that led to an eventual crash, the Nashville real estate market in particular has two significantly different factors working in its favor. First, with roughly 86 people a day moving to the Nashville area right now, builders are struggling to keep up with demand, and that’s on top of an already low inventory. Nashville’s job market is among the strongest in the country right now, and with no signs of employment growth slowing down, that trend will likely continue well into 2017.
Furthermore, as just alluded to above, inventory is extremely tight right now, which is perhaps the primary driving force behind the dramatic increase in home prices we’ve seen over the past 12 to 18 months. It’s estimated that there was only about a 2.8 month supply of single-family homes listed at the end of January, which is well below what’s considered a normal market. But with unprecedented growth continuing to re-shape Nashville as we know it, the possibility of this current bubble bursting just isn't likely—at least for now. So if you’re looking to buy in 2017, the time to act is now, before both mortgage rates and home prices resume their inevitable upward trend.