NASHVILLE, Tenn. (WKRN) — As we head into 2023, the Nashville real estate market is in a much different position than it was last year.
If you ask Greater Nashville Realtors’ 2022 President Steve Jolly what he thinks of Middle Tennesse’s housing market, he’ll tell you it’s still in solid shape. However, he warns challenges could lie ahead.
“My biggest concern is inflation and whether the Fed can get that under control. If they can’t, we’re definitely going to see more interest rate rises, and that would be devastating to the market. It would bring home sales down to a screeching halt,” Jolly said.
Jolly said experts have talked about interest rates rising to 8.5%.
“Most of us know and we’ve heard that that’s close to the long-term average of seven percent, but the people that are buying homes right now aren’t used to that. They’re used to paying three and four and five percent interest rates on a mortgage. So that, along with how much homes cost these days just makes it unaffordable,” he said.
Jolly said 2022 turned up some major perks for buyers.
“They don’t have to give up as many of the terms that they were giving up last year. They can have an inspection, they can have an appraisal. They can actually get some closing costs paid or possibly even get an interest rate buydown so it’s more affordable that first and second year,” Jolly explained.
Jolly said it’s still a favorable time to sell, as housing prices are up year-over-year in Nashville, and condos even more so.
Realtor Deborah Vahle thinks interest rates will normalize over the next year.
“A lot of people have kind of held back from buying because of the uncertainty of the interest rates, and now that those are starting to stabilize, you’re going to see those buyers come back to the market, which is going to give a healthier supply and demand again,” Vahle said.
For that influx of buyers, her advice is to get a good lender who knows about all the incentives being offered right now.
“You’re going to see a lot of things on the news about some ups and downs. Nashville usually continues to remain pretty stable when it comes to real estate and everyone always wishes they would have bought something five years ago, and right now is an amazing time to make that purchase,” Vahle said.