Spring 2021 – House Market Nashville
House Market Nashville is experiencing the same growth as a handful of other markets across the country. Here are the top 3 house market changes that are happening right now;
Big Home Value Bump
10% value growth this Spring.
There are several key factors that have created this value bump:
- Post Covid Migration. There is lots of movement right now due to people being stuck in a home that is not the right fit. There is a new need for in home office space.
- Public Policy. This one goes along with Post Covid Migration. People are making moving decisions this summer based on how their local public policy was during Covid. Given how large our country is many are moving into areas that are more aligned with how they want emergency situations handled by their local leadership.
- Riot Racing. People are racing away from areas that have had rioting. This includes some hot spots throughout the country as well as downtown areas in general.
- Home Search Changes. Home search sites such as Zillow have updated their home value algorithms. I don’t know all of the details to this because I’m not a programmer employed by one of these companies. Some home search sites have added in basement square footage that was previously not included. For some home values this may have doubled the publicly listed value on the home search sites.
- Land Value Bump. In places that have low inventory such as the house market in Nashville, the value of land has gone up. If your home is on an acre lot it will be valued higher then a comparable home down the street that is on 1/2 an acre lot.
Sellers Market Buying Frenzy
We’ve created the Southern Home Buying Sweeteners Strategy Guide in order to win the house our buyers want. If you don’t use an extremely aggressive strategy to get a home then you will lose it every single time. Inventory is just still so low that buyers have to fight to get what they want.
Biggest Winners
The big home value bump benefits home owners in the following scenarios;
- Refinancing. If you want cash to finance a home improvement, investment or business start up now is a great time. Interest rates are low and you can pull your newly increased equity out of your home to finance it.
- Re-location. If you decide to relocate to a less popular area you will make a good amount of cash while still being able to buy a comparable home.
- Downsizing. This one only works if you are downsizing and relocating. If you sell to downsize you will quickly realize that the cost to buy in the same area will not provide a profit. You will sell high but then have to buy high. This does work if you have a newly empty nest home that is far too big for you and you want to shift into something more manageable. Expect to do a house swap and break even.
