NASHVILLE, Tenn. (WKRN) — For out-of-towners eager to call Nashville home, the prices of real estate are likely a bit of “sticker shock.”
Nashville has been coined as the “It” city. With more people moving south since the start of the pandemic, it’s a mad dash to close on the perfect home.
“I think Nashville is in a unique position because of the way our state is structured fiscally,” said Jeff Checko, an associate with RE/MAX in Nashville. “It makes it attractive to people no matter what is happening with the economy at large.”
Alex Bordonaro is a musician and splits his time between his hometown in Connecticut and Nashville.
“That’s what you hear from being from the North or New England ‘oh, down South people retire there. Homes are cheaper. It’s more affordable, and there’s the property taxes, significantly less, so closing costs are cheaper,'” said Bordonaro. “I definitely was surprised. It’s not that much different, especially when you’re looking around Nashville.”
Bordonaro and his parents considered investing in a property together downtown, but decided on a home in Hendersonville in 2018. They experienced major “sticker shock,” forcing them to put in an offer shortly after taking a tour.
“It was just shocking,” Bordonaro said. “I knew Nashville was definitely growing at the time. I didn’t know it was affecting the real estate market like that.”
Scott Nudelman from Long Island feels the complete opposite. After looking at more than 100 homes in Nashville and Middle Tennessee, he settled in Smyrna in 2019.
“I have about the same size house we had in New York for $150,000 less than we paid in New York,” Nudelman said. “It was a big win for us to get off of Long Island.”
Now that it’s a seller’s market, his realtor told him that he and his wife could cash-in big.
“Three weeks ago he said ‘how would you like to make an additional $300,000 on the house I sold you two years ago?’ He said he could get me a cash offer the same day. The value of my house is about $300,000 more than it was when I bought it in 2019,” Nudelman said.
It’s tempting, but his family doesn’t want to leave their “forever home.” Meanwhile, Bordonaro and his family are planning to jump on the opportunity.
“We are definitely thinking about that, talking about it, because who knows what can happen with the market when things open back up?” Bordonaro said. “If we decided to sell it now, it will be higher than what we get for it in like two years. We would take the money and reinvest it in a couple of years back into a condo downtown.”
CoreLogic recently released their Home Price Index forecast. Home price growth reached 10% in January – the highest annual gain since 2013. Buyers are coming from places like California, New York, and Seattle, making the competition even hotter.
There are no signs of slowing down, especially with a lack of inventory. Experts warn buyers, beware.