NASHVILLE, Tenn. (WKRN) — The housing market, as we know it in Nashville, is red hot—rebounding to pre-pandemic norms faster than the economy as a whole.
New data shows Tennessee has had the 13th largest increase in home prices since 2010.
According to Zillow, experts across the country forecast the housing market growth will last, at least, into 2021.
“We’ve had the strongest summer we’ve ever had,” said Debra Beagle, co-owner of The Ashton Real Estate Group of RE/MAX Advantage.
In a survey of 104 economists and real estate experts conducted by Pulsenomics and Zillow, home prices are expected to grow by 3.7 percent in 2020. Three months ago, panelists expected a 0.3 percent decline.
Those surveyed are now more optimistic about 2021 home price growth than they’ve been in more than three years.
“The housing market has been one of the strongest sectors in the economy and prices have been accelerating all summer long so that was a huge miss by professional forecasters earlier this year,” said Jeff Tucker, Senior Economist at Zillow. “Then, when we resurveyed them just last month they completely changed their tune and are looking forward to robust price growth for several years in the housing market.”
Tucker says, on average, price growth expectations are slightly down from last quarter for the year 2022, 2023, and 2024, but overall experts are still predicting growth.
“They’re looking at a 3.7 percent increase in values, which our average, $377,000 in the metro Nashville area, that’s another $10,000-$15,000 of increase of property value,” said Beagle.
According to Zillow, in the Nashville metro, home values are up 5.9 percent year over year as of August.
Quite a different look when it comes to inventory— it’s currently down nearly 40 percent.
“Economists are looking at the market and saying ‘wow it is snapping back to normal,'” said Tucker, “When we talked about a v shape recovery in the economy the housing sector has absolutely had one, if anything, it’s jumped above pre-recession trends and so this is economists looking at it and saying we’re going to be on track for robust price growth for years to come.”
While experts are optimistic about a relatively quick return to pre-pandemic levels for the housing and construction markets, they are far less optimistic about their expectations for a full labor market recovery with one-fourth of experts saying they don’t believe the unemployment rate will fall below 3.5 percent until 2025.
News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2020 reports.