NASHVILLE, Tenn. (WKRN) — If you’re waiting to buy a home in Middle Tennessee, you’re in good company. But real estate experts say you could be missing out on a major opportunity.
According to a new Zillow report, realtors say the biggest “misconception” homebuyers have is believing housing prices will crash. Zillow researchers don’t believe prices will drop drastically, and Greater Nashville Realtors are still reporting year-over-year price increases. Nonetheless, the misconception has created opportunities for homebuyers.
“Greater Nashville Realtors just released October numbers and there’s a 92% increase in inventory. And what that means for local buyers is that they have more options to choose from in housing without that level of panic or urgency that we might have seen a year ago,” said Kevin Wilson, Treasurer or Greater Nashville Realtors.
With more houses on the market, buyers are reaping the benefits.
“Now you have the option to maybe negotiate terms with a seller, negotiate sales price, there are some loan options that were not available a year ago that now sellers will look at. You can do a 3.5% down FHA loan,” Wilson said.
If prices or mortgage rates do drop, the very opportunity you’ve been waiting on could actually backfire. Realtors say buyers who have been sitting on the sidelines will come rushing back to the market.
“If you get in now, you can always refinance when that rate drops, but you’re not competing with this influx of buyers like we were seeing in the late part, fourth quarter of last year,” Wilson said.
Year over year, house prices are still increasing in Nashville compared to October 2021; the average residential price rose by roughly $50,000. He notes prices could continue to rise, along with mortgage rates, which aren’t expected to dip until inflation is under control.
“You have options today. You may be able to get into a home for less money out of pocket than you would have had to have spent a year ago. So make that phone call, know what your options are, and make an educated decision that best suits your needs,” Wilson said.
Your first step in exploring your options should be securing financing. It’s important to know exactly how much you can afford under current interest rates before you start shopping.