NASHVILLE, Tenn. (WKRN) – Nashville’s housing market is turning somewhat into a boulevard of broken dreams for renters, as another real estate record is broken.
According to RE/MAX’s National Housing report, Nashville’s median home sales price now sits at $410,000, the highest recorded by Re/MAX.
That is a 23.5 percent increase over last year.
“It’s as crazy as it was last year still and I believe that will continue well into the second quarter,” Jeff Checko, Director of Relocation at The Ashton Group of RE/MAX Advantage said. “For those people who are talking as if the market is going to cool, they’ve cost themselves a lot of money.”
Though a $410 median sales price doesn’t mean you can only find homes at that price, it does mean you have to have flexibility and creativity to find a home in a hot market, like Nashville’s.
There are options.
Think condos, in the Nations and East Nashville. Checko says you’ll find several in the $300,000’s.
Townhomes are also a good choice, especially if they’re not brand new.
“Inside the loop as I like to call it, I-440 on the southside and Briley on the North and northwest side getting anything new construction under $400k that’s a single-family home, is challenging right now,” Checko said.
A contributing factor is Nashville’s inventory crisis, with our housing inventory hitting another historic low in December with just over a one month supply of homes.
Despite the strain, Nashville has held its rank of number one for fastest selling homes in the U.S., with the average Nashville house selling in just 13 days, according to RE/MAX.
“So many people move into our market and say, ‘I’ll rent for a year and see where I really want to be, then I will decide where I’m going to focus my search,'” Checko said. “Well, that sounds pretty practical and reasonable and often times I’d agree with you, but those people that did that 12 to 24 months ago if they were shopping at a million dollar price point, they will now have to spend 1.3 million or more to get the same house they would have bought at one million dollars 18 months ago.”
Checko says the waiting game isn’t working.
“It’s not going to change anytime soon. Is it going to be as rapid?” he asked. “Probably not. We certainly kind of hope not. We would like to see a little bit more playing field, but the idea that there’s going to be some sort of sweet spot to buy is foolish at this point.”
As for short term rates and mortgage rates, Checko says he hasn’t seen a big change.
“The raise in short term rates and last week’s jump in mortgage rates doesn’t seem to have slowed the market here locally at all. If anything, it has created more urgency to act now and still get an attractive rate,”
Checko said.