While it's impossible to predict the future perfectly and accurately, there are some things we can look at to forecast what may happen. Danielle Hale does this as the chief economist of Realtor.com and provides some information to look at when it comes to buying and selling a home in Nashville in 2019.
The 2019 National Housing Forecast looks at the home prices and how they may grow with a slower pace this year, how inventory is expected to continue to increase, how interest rates are expected to rise to make owning a home more difficult, and how millennial buyers are becoming more common within the market.
The overall United States real estate market for 2019 is expected to remain as a seller's market, but inch closer to a balanced market by year's end.
What about the Nashville Real Estate Market?
Realtor.com looks at the nation as a whole, but not every market is exactly the same. It's important to look at the Nashville real estate market for 2019, as well.
While the city is expected to have quite a bit in common with the national trends, it does differ in the category of high-end home inventory. With plenty of new home construction in the high-end area, Nashville is expected to be one of the very few high-growth markets across the country. It's expected to show incredible inventory growth in the double digits when it comes to high-end homes.
This puts Nashville in the same conversation as Boston, San Jose, Seattle, and Santa Clara. These are the other U.S. markets expected to see large growth in high-end inventory throughout 2019.
The home price growth for the Nashville-Davidson-Murfreesboro-Franklin, Tennessee area is expected to come in right under 7%. This is higher than most of the rest of the county with the overall home price growth forecast at just 2.2%. In addition, these predictions came in before the announcement of the new Amazon HQ2, which will have an impact on housing markets. The new logistics hub from Amazon in Nashville may also impact these numbers.
What's this Mean for Nashville Buyers & Sellers?
These forecasts impact buyers and sellers differently and, again, they are just predictions.
If you're a seller and your home is priced in the entry-level range, don't expect to sell at super-fast speeds. With more inventory comes more competition, which leads to more days on the market to get a property to sell. If you need to sell fast, expect to make a price adjustment.
Buyers may seem more options, especially in the high-end market. However, inventory will remain tight on entry-level homes and mortgage rates could make it more expensive to buy.
The real estate market changes constantly and predictions are just that; predictions. While sometimes they are pretty dead on, other times, the market changes quickly or goes in a different direction than expected. If you'd like to know more about the local real estate market, contact a Nashville real estate agent. You can also read the full 2019 National Housing Forecast here.