NASHVILLE, Tenn. (WKRN) — Impacts on U.S markets continue as the war in Europe intensifies, and consequences of the conflict could impact Nashville’s housing market.
“We’re throwing around the term ‘WWlll,’ of course there’s cause for concern,” said Jeff Checko, Director of Relocation at The Ashton Group of RE/MAX Advantage.
It is also a point of interest, with many wondering what to expect with real estate here in Nashville.
“Short of us getting really involved in a conflict or heaven forbid conflict coming to our shores, I don’t see anything affecting what’s happening here in our marketplace, and let’s hope that never occurs,” Checko said.
Yet, there’s chatter of a 2008 repeat. However, we have to remember there’s a big difference between now and then.
“We had appraisals being improperly valued. We had loans without proper documentation,” Checko said. “Those things don’t exist right now.”
What does exist, though is inflation and lots of it.
“Putin’s invasion literally threw gas on the fire of inflation,” said Steve Jolly, President of Greater Nashville Realtors.
As prices rise, it’s becoming harder for people to afford a home.
“I think there’s a secondary risk to supply chain that could slow down home building and or raise prices,” Jolly said.
According to the National Association of Home Builders, higher oil and gas prices, due to conflict, will only exacerbate the already-rising costs of building materials.
“The thing about inflation is that it necessarily doesn’t go down,” Checko said, adding that once a business sees they can charge a certain amount and people will pay, it’s unlikely they’d drop the price by much.
This means we may not see material prices dip back down to 2019 levels, however, an even ebb and flow between buyers and sellers is coming.
“Do I think we’re going to see a correction? We have to,” Checko said.
Especially in an area, like Nashville, that’s faired well amid crisis.
“In our market, we still have the lowest days on the market in the country,” Checko said, adding that we must remain optimistic about our ability to withstand changes that are simply out of our control.