NASHVILLE, Tenn. (WKRN) — Nashville’s real estate market continues to soar. Demand is high, which in turn is boosting home values and sales.
A new analysis from Zillow shows this demand will likely stay for years to come and it all stems from our past.
Real estate agent Jeff Checko with The Ashton Real Estate Group still can’t believe how strong the market has been this year, amid a pandemic.
Home values continue to grow and inventory continues to drop.
“It’s a challenge, people need to act quickly,” Checko said.
“For buyers it means the market will continue to be very competitive and that will mean homes might not last in the market very long. A matter of days rather than weeks or months and that homes may sell at or above list prices,” said Chris Glynn, Senior Economist with Zillow.
Long-term financial impacts from the Great Recession, years of low construction and recent price growth has made it harder to afford a home.
“When you look at being 30 percent down from last year, what we had for inventory, it’s unbelievable,” said Checko, “I think all of my colleges and myself included practicing in the marketplace are seeing multiple offer situations among most price points, even into the million plus range.”
According to Zillow, homes are flying off the market 10 days faster than they were last year, the median sale price has risen more than ten percent and the real estate company is predicting Nashville home values will grow by roughly eight percent in the next year.
There are several factors in play here:
- Millennials are entering the peak homeownership age.
- Interest rates are extremely low
- A large number of families are re-evaluating housing needs due to COVID-19.
“There’s still, believe it, or not, pent up demand for housing as a result of the great recession,” said Glynn.
Low rates of household formation since the Great Recession have caused 5.7 million “missing” households, a new Zillow® analysis finds.
There are 5.7 million “missing” households since household formation rates dropped during and after the Great Recession, representing Americans who are living with parents into adulthood or doubling up with roommates instead of moving out on their own or with a partner.
Those millions of missing households are likely to boost housing demand for at least the next several years as many look to get into their first home, especially as the large Millennial generation is aging into peak homebuying age.
“It’s a really interesting thing, it gives you even more confidence [in the market].”
Confidence, among so much uncertainty? We’ll take it.
News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2020 reports.