Real Estate is always changing, it is a constantly adjusting market. Here are 5 arguments for and against why the Nashville market might go up or down.
5 Reasons Why Nashville Real Estate Might Keep Going Up
1. Nashville is still very popular. 86 people a day move to Nashville. We remain to be a desired city for many different industries and viewpoints.
2. Big players continue to move to town. With the opening of an IKEA around the corner and TopGolf opening this year. Big businesses are betting on Nashville.
3. We’re just now back to 2007 prices. If the crash of 2008 had never happened and you adjust for inflation, home values are where they would have been without the crash. One could argue that prices have just got back to normal.
4. We’re seeing good deals go quick. You better have a good agent and have your ducks in a row when you want that house.
5. Federal tax cuts. If we see a significant federal tax cut, it might put more money in buyer’s pockets and help with that down payment.
5 Reasons Why Nashville Real Estate Might See a Correction
1. VRBO Rules. These are changing and getting stricter. If investors can no longer rely on potential extra money from services like AirBnB, the math on a house’s income potential changes for the worse.
2. Nashville’s economy relies on the medical industry. Whether you’re Blue or Red, we can agree that the future of healthcare is uncertain. Nashville’s highest paying jobs come from within this uncertain industry. If those highly skilled people stop moving to town, luxury homes would not see the high-income buyers we see today.
3. We’re seeing more vacant homes. Sometimes they are the seller’s second homes, but usually, they are sellers that have to move to their new home and don’t want to cut their price to be more realistic.
4. Rising interest rates. Interest rates have been historically low for a long time. As we are starting to see an uptick, buyers that can afford a 350K home today might only be able to afford 340K tomorrow.
5. Tax code changes. If the Tax Cuts and Jobs Act, H.R. 1 passes congress, the National Association of Realtors claims, “Homeowners could lose substantial equity from the more than 10% drop in home values likely to result if the bill is enacted.” Will this effect Nashville? We don’t know.
We would love to hear your thoughts. Are you bearish or bullish? Email firstname.lastname@example.org!
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