CLARKSVILLE, Tenn. (WKRN) — Nashville’s neighbor to the north is in the midst of dramatic change; known for Austin Peay State University and the military, Clarksville is also a popular place to buy a house.
Home sales in Clarksville are up 18 percent over last year, according to RE/MAX.
The real estate industry there is like a fire that continues to find fuel– and it’s heating up.
“People are discovering what a great place Clarksville is to live,” said Debbie Reynolds, who’s been a broker in the city for 39 years.
Debbie currently works at Century 21 Platinum Properties.
“The size of the town has changed dramatically we’re probably five times bigger than when I started in real estate and it’s growing in every direction,” she said, adding it’s growing away from being known for just the military.
Reynolds says Clarksville has become a more metropolitan place to live and compared to Nashville, the cost of living is cheaper and you can get more bang for your buck when it comes to buying a home.
“It’s a little quieter and a community feel,” she said.
The average price for a home in Clarksville is around $225,000.
Zillow economist, Sarah Mikhitarian, says home values in Clarksville, TN have climbed 23% over the past 10 years with the vast majority of that growth happening in the last 5 years when home values climbed 21%.
“One thing that is unique about Clarksville is throughout the housing boom bust and recovery they had a pretty muted bust,” Mikhitarian said. “Home values dipped slightly and kept at a steady pace for a few years, but they grew pretty rapidly and continued to grow rapidly shortly after we hit that recessionary period.”
This is all growth, Reynolds says, isn’t slowing any time soon. She tells News 2 about 1/4 of her business comes from re-location buyers, many of them, retirees. She also said many who grew up in Clarksville are moving back home.
“Inventory is low, it’s lower than I have ever seen it.
That means buyers need to pack their patience.
“If they’re looking for a specific product they’re going to have to hold on because it may not be there right now or they will have to build.”
Or, you could flip. Clarksville was recently named one of the most popular places to flip a home. It made it in ATTOM Data Solutions Top 10 Markets with the highest home flipping rate.
“I work with investors that do flips and that is really big it has worked in the past to be lucrative where investor could make good return that is slowing down a bit,” Reynolds said.
That slowing is due to high competition in the marketplace, plus construction costs are on the rise– mostly due, in part, to tariffs.
“Were getting notices of 10-20 percent increases on carpet, flooring and pluming products,” Reynolds said. “It’s really hard for builders to make a profit they want to go bigger because that increases their chance of making a decent profit and they’re in the business to make a profit.”
She added that the affordable home is harder to make for a builder as land costs have gone dramatically up.
It shows– in the last year, home prices in Clarksville have increased 12.7 percent and rent has increased 7.9, according to a recent study from GoBankingRates.com
“We may see a bit of a slowdown because that happens with changes in the economy and figures and all that but even when we went through the recession Clarksville continued to have new construction, continued to expand and grow and I see that continuing,” Reynolds said.
News 2 is digging deeper into the growth of Clarksville and the impact it has on communities in Middle Tennessee. We explore “Clarksville: The Good, The Bad, The Future” all day Thursday in every newscast. Click here for more.