Real estate experts say the housing market is cooling, and that’s great news for first-time home buyers.
According to Zillow, the typical entry-level home costs around $163,000. That number is up 11.2-percent from a year ago, which is above the national average of 9.2-percent appreciation.
Last year, entry-level homes were appreciating at a 12.6-percent annual pace, and two years ago, at 17-percent. Entry-level inventory is up a whopping 29.5 percent, which is well above the national average of 4.1 percent.
“In Nashville in particular, things are actually looking really good. Now don’t get me wrong, it’s still going to feel a little bit harder for say a first-time home buyer than a repeat buyer buying in a higher priced tier, but things are changing faster in that entry-level price point,” said Zillow Economist Skylar Olsen.
The biggest part of that change is the number of homes on the market.
Olsen said, “Two things are contributing to this. Not only is it that homes are taking a little bit longer to sell because demand is you know pulling back and so you have a little bit more time so you can make that decision in a bit more caution. So, homes aren’t selling as fast but the big part about it that’s really awesome is actually the number of homes that are newly listed is increasing over time, meaning there is truly more homes to choose from over this home shopping season than there were last year.”
Because there are more entry-level homes on the market, first-time home buyers may not have to “jump” as soon as they see a house they like, so the process may be a little less stressful. And first-time buyers could even see price cuts.
Olsen said, “One of the other things that’s nice and why we know things are cooling off is we are seeing more of those listings having price cuts. So because they’re staying on the market for longer, the buyer is in a bit more of a driver’s seat when it comes to negotiating power than they have been in the past. Ultimately this is very healthy for a housing market.”
While the market may be cooling for entry-level homes, Zillow economists say that’s not the case for mid and upper-level homes because inventory is increasing at a slower pace and there is more demand.
News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2019 reports.