NASHVILLE, Tenn. (WKRN) – From white hot to red, experts say it’s a start.
Though Nashville home prices continue climbing, those surrounded by home sales suggest a strong but more stable housing market is coming.
This bullish market is heading toward a direction that’s great for future buyers.
“The Hermitage market inventory has doubled in the past 12 months,” Bobby Hill with Crye-Leike Realtors said. “The Lebanon market has gone up half month supply; then we’ve got Mt. Juliet which is hot. It’s really doing good that inventory has reduced a little more.”
Though every area is different, realtors say we’re starting to see a shift.
According to real estate giant, Zillow, for the first time since January monthly home value appreciation slowed. However, the market is still red hot as demand outweighs supply and annual appreciation is sitting at record levels.
“I think what’s interesting now is we’re hoping that we’re witnessing a bit of a drift toward normalcy. I think we’re going to see prices increasing, but maybe not as frenetic of a pace, not only to the appreciation but to the activity of the listings themselves,” said realtor Jeff Checko with the Ashton Real Estate Group of REMAX Advantage.
According to the latest RE/MAX National Housing Report, the average Nashville home continues to sell in just 10 days, though August home sales are down slightly over July and last year.
“We were flying so high; it had to adjust just like a plane. We leveled out a little bit,” Hill said.
In the meantime, Zillow reports typical home values are $356,137, up 2.6 percent from July and 18.6 percent over last year.
Checko says it’s the biggest year over year price appreciation growth he’s seen in his career.
“I love when people gain equity and as someone who invests in real estate, I love to see that, but then you also start worrying a bit about sustainability and affordability for people who are not only moving into our market, but those who have been here for a while. You want to make sure people have options,” Checko said.
Those options may be growing come 2022.
“I think we have about a year,” Hill said. “Basically, November of next year…that’s when we fall back on the time frame. Then I think you’ll see it descend a little bit and level out.”
Slowing monthly appreciation is not expected to be echoed in slower annual growth until early 2022, with year-over-year growth in the Zillow Home Value Index expected to end 2021 up 19.9 percent from the end of 2020, and continue accelerating to 20.1 percent in January 2022, before beginning to slow down, according to Zillow.
“I think the best advice for sellers right now is multi faceted; one if you’re going to stay in market and you sell high; you’re also buying high, so there’s a relative relationship there and secondly, what we’re seeing right now is push back in our marketplace from the buyer base toward sellers who are getting overzealous with their asking price,” Checko said.