NASHVILLE, Tenn. (WKRN) – 2017 was a great year for anyone selling a home in Nashville. It was one of the hottest housing markets in the nation!
A year ago, the typical home stayed on the market for around 68 days. In 2017, it stayed on the market about 60 days, including the time it takes to sell and close. This is great for sellers, and according to Zillow, things will start to get better for buyers in 2018.
“If I was to characterize Nashville for the last few years, we’d be looking at really constrained inventory. There are very few homes for sale for the demand, the amount of people looking. However, over the past month, things have gotten a little bit better. It’s still going to be really tight, but inventory is starting to rebound,” said Skylar Olsen, Zillow Senior Economist.
Olsen tells News 2 that homes in Nashville are selling almost three weeks faster than the nation as a whole.
She said, “At the whole, inventory remains very limited. Nashville home values are still growing in the double digits just like you have for the past twenty consecutive months in terms of seeing annual appreciation you know above 10% that’s very strong, very aggressive. Into the next year, we do expect things to slow down, but you will still be in one of the hottest housing markets across the country so don’t expect things to be slowing down too significantly.”
You should expect bidding wars to continue into next year.
“Still expect a fairly aggressive pays for home value growth in the competitive market that we’re in. That’ll be especially true for the more affordable level of homes. So generally your entry level homes are going to continue to appreciate, potentially in the double digits into the year ahead,” Olsen said.
Research shows houses here, and in the nation as a whole, are more expensive than they’ve ever been, and will continue to rise next year.
Right now, you can expect to pay $228,900 for a typical Nashville home. That’s up 12.5 percent annually. That means in November 2016, home values were worth $203,500.
Still, the typical home in Nashville is fairly affordable compared to most homes in other U.S. cities.
“If you’re looking at San Jose, you’re looking at $1-million. If you’re looking at San Francisco you’re looking close to $900,000. Other typical metros that are closer to the range of where Nashville is, you’re looking at Phoenix, Arizona, Las Vegas, these are other examples of areas where home prices are much more moderate. Those same more moderate areas in terms of home price are not moving nearly as fast as Nashville,” said Olsen.
In 2018, although the housing market will move a little more slowly making things somewhat better for buyers, inventory will still be limited, meaning Nashville will still be among the fastest moving in the U.S.
According to Zillow, home values are about 45 percent above the peak reached during the bubble, which was fairly gentle in Nashville compared to what other markets experienced.
Most of the appreciation is driven by less expensive homes, which are up 15 percent year over year– more than twice as much as top tier home values which are up 7 percent.
And mortgage rates are a big part of buying a home. Rates continue to remain at record lows, so buying a home now is more affordable now than it was historically.