NASHVILLE, Tenn. (WKRN) — Baseball is back and so are bidding wars across the country. Interest rates remain extremely low and demand in Nashville is high, meaning eager buyers should be ready to bid and play ball.
As we start the first week in August, real estate continues prevail– a surprise for Zillow economist, Jeff Tucker.
“We ran some sort of traditional economic forecasts back in March,” Tucker said. “We forecasted we wouldn’t do so well in the housing market the data has come in fairly positive.”
The pace of home sales is trending well ahead of last year, according to Zillow’s most recent weekly market report.
“There aren’t that many listings out there, so the ones that are on the market are getting competing offers and driving prices up,” Tucker said.
New listings in Nashville are unable to keep pace with buyer demand, that’s causing homes to sell quickly.
“Our builders are working hard bringing forth some new construction in lower price points under $250,000, $275,000, there really is not much inventory there,” Debra Beagle said, Managing Broker/Owner, The Ashton Real Estate Group of RE/MAX Advantage
Across the U.S, completed home sales are 16-percent higher than last year, Zillow said.
In addition, highlights in the Nashville metro include:
- Homes typically went under contract after 34 days, 6 days slower than last year
- New listings fell 0.3% from last week. Total inventory is now down 12.4% year over year
- The median list price is up 4.3% year over year to $377,860
- The median sale price the week ending June 13 was $305,995, 1.8% higher than a year earlier
“With interest rates low people are wanting to move and there’s limited inventory right now, so it is very competitive,” Beagle said. “With interest rates being low and buyers looking for homes, we don’t have much inventory– that creates bidding wars.”
Nationwide, Tucker said the number of homes on the market is down about a quarter from this time last year.
“I think there’s a generational mismatch where there’s a whole like a baby boomers sitting tight. They don’t want to downsize into a condo, they don’t want to go into a nursing home– they’ll put that off for as long as they can. Meantime, the millennials are just this massive generation trying to buy their first home right now there’s millions of more people in their early thirties saying lowest market rates ever I should buy my first home. So, we’ve got these two sort of big generations trying to be home owners at the same time and there’s not enough homes to go around.”
Larissa Farley is an agent with RE/MAX Homes and Estates in Nashville.
She said the market is on fire and homes are selling quickly.
To help home buyers compete and win a bidding war, she offers the following tips:
- Get prepared
- Get a great Realtor who can keep you knowledgeable on market data
- Be ready to make quick decisions. You might have to up your game on your offer quickly to win
- Offer a quick home inspection
- Don’t ask for the seller to contribute to closing costs, title expenses, etc
- If you can cash, do!
- Be flexible on the closing date
Meantime, when it comes to rent, growth has slowed amid the pandemic, impacted heavily by unemployment. Tucker says around 3-million people have moved home.
Zillow said urban rent growth has slowed more than in suburban ZIP codes, possibly because typically less expensive suburban rentals may now be more appealing for those who no longer need to commute or are temporarily unable to enjoy some of the amenities of urban living.
In the Nashville metro:
- In June, rent in urban areas was growing 1.5% year over year, and rent in the suburbs was growing at a pace of 4.0%
- Since February, that pace of rent growth has slowed by 3.6 percentage points in urban ZIP codes. But it’s slowed by 1.3 percentage points in the suburbs
Stay with News 2 for continuing coverage of the COVID-19 Pandemic.