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Nashville, TN: Real Estate Market & Trends 2016

Published on Wednesday - September 28, 2016

Nashville, Tennessee is home to country music, the Grand Ole Opry, and a thriving real estate market. The first-half of 2016 is proof; the Nashville real estate market saw home prices and appreciation rates outpace the national average during the second quarter, benefiting Nashville real estate investors and homeowners alike. The Nashville real estate market also witnessed improvements to the local economy, as employment and unemployment rates fared better than the rest of the country, while an influx in new housing construction continued to strengthen the overall health of the Nashville housing market. With the second-half of 2016 underway, Nashville real estate is ripe for investor activity in 2016 and beyond.

Nashville, TN Real Estate Market Statistics:

Nashville real estate investments

Along with climbing home prices, the Nashville real estate market continues to produce fruitful gains in total equity. The second quarter saw one-year appreciation rates for Nashville real estate rise to 8.9 percent, compared to the national average of 4.9 percent. Three-year rates, on the other hand, reached as high as 29.3 percent. The rest of the country earned 17.8 percent over the same period. For Nashville real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession.

If total equity gains are the apple of every investor’s eye, the Nashville real estate market has cultivated an orchard of prosperity. For those considering Nashville real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Nashville, TN housing market one year ago have appreciated, on average, by $21,942. The national average was $14,963 over the same period.
  • Homes purchased in the Nashville, TN housing market three years ago have appreciated, on average, by $60,733. The national average was $46,878 over the same period.
  • Homes purchased in the Nashville, TN housing market five years ago have appreciated, on average, by $86,602. The national average was $82,353 over the same period.
  • Homes purchased in the Nashville, TN housing market seven years ago have appreciated, on average, by N/A. The national average was $77,054 over the same period.
  • Homes purchased in the Nashville, TN housing market nine years ago have appreciated, on average, by $63,804. The national average was $31,126 over the same period.

As of July 2016, there are currently 336 properties in the Nashville, Tennessee area in some stage of foreclosure. According to RealtyTrac, the number of Nashville foreclosures in the month of July was 47 percent higher than the previous month and 35 percent lower than the same period in 2015. The number of REO properties in Portland increased a whopping 138.5 percent from the previous month, but fell 20.5 percent from the same time last year. With such a high percentage of REO properties available, Nashville real estate investing could see an up-tick in the upcoming months.

Nashville, TN: Real Estate Market Summary:

Nashville housing market

  • Current Median Home Price: $227,000
  • 1-Year Appreciation Rate: 8.9%
  • 3-Year Appreciation Rate: 29.3%
  • Unemployment Rate: 4.0%
  • 1-Year Job Growth Rate: 3.1%
  • Population: 678,889
  • Median Household Income: $44,361

Nashville, TN: Real Estate Market (2016) — Q2 Updates:

Nashville real estate investing

From home prices and appreciation rates, to home affordability and new housing construction, the Nashville real estate market continues to transcend the national average in the second quarter of 2016. That said, the backbone of Music City USA’s success has been its improving economy. While employment has held up and is on an upward trend, unemployment in Nashville is better than the national average and improving. During the second quarter, Nashville had an unemployment rate of four percent, as opposed to the national average of 4.9 percent. The one-year job growth was an impressive 3.1 percent, compared to the rest of the country at 1.9 percent. In comparison to other markets, local employment growth in Nashville is strong and should only get better.

The economy has boosted two fundamental indicators: home affordability and new housing construction. Nashville homeowners paid 9.6 percent of their income to mortgage payments during the second quarter, while the national average paid 15.8 percent. Historically strong, the Nashville housing market is now one of the more affordable in the country. That said, one component boosting affordability in Nashville is new housing construction. During the second quarter of 2016, construction reached 81.9 percent above the long-term average in Nashville, while single-family housing permits rose to 15.2 percent, compared to the national average of 10.6 percent. The boom to new housing construction should further assist affordability in coming years for the Nashville housing market.

Moving forward, the Nashville real estate market is expected to grow consistent with the national average in the second-half of 2016. The National Association of Realtors (NAR) has forecasted higher price growth in Nashville than in the U.S. in the next 12 months, with price expectations for Nashville real estate anticipated to grow by a whopping 4.2 percent in the second-half, as opposed to the national average of 3.6 percent. The Nashville real estate market is primed to see a big gains in the second-half of 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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