House Market Crash
Many people have asked, “Are we in for a house market crash?” Not likely right now. Buying and refinancing will continue as long at the 3.25 rate holds. The historic low interests rates will continue to driving home owners to refinance and renters to finally get approved to buy their first home. A house market crash is ultimately controlled by the Federal Reserve. When interest rates are low, house buying surges. When interest rates are raised it slows down the house market. At times this is good and healthy. During crisis, such as Covid-19 it is wise to hold the rate down to keep the struggling economy moving forward.
House Market Update for October 2020
The house market is still having a lot of activity but there is some slow down over last month. House sellers are receiving very favorable sale prices due to low inventory. Home buyers are getting an amazing deal on their 30 year fixed rate mortgage thanks to the 3.25% that is still available.
The gradual slow down is normal and expected for two reasons. The first is that in the US the off home sale season lasts from September through February. While school is in session families are very hesitant to make any sort of move that would disrupt their children’s education. This truth holds steady even with the Covid-19 educational crisis. Even with the hope of children making it through yet another school year successfully is enough to hold off on any location moves.
Election Impact
The second reason is that we are in an election season. Historically this puts a pretty big slow down on home buying and selling. The nation holds it breath until after the election is over. A lot of focus and effort is put on elections. Companies hold of on new hires until they know what sort of economic changes to expect from the person elected.
Until the election is over expect to see more of a slow down this month. In addition, there is potential to see the extra slow down continue through November. If the election result is delayed it will also delay the housing market post election pick up.
If Biden is elected the slow down will continue. The reason is that there are a lot of economic plans that he has yet to clarify. The uncertainty will hold back employee hiring which will hold back the housing market.
Trump is elected there could be a surge after the results are confirmed. The surge will most likely be delayed this election due to the expectation of confusion on voting results. Plan to have a slow down through October and November with a possible pick up in December.
House Market 2020
Whoever you vote for, one thing is certain. People like predictability. Uncertainty puts a strain on the economy. We can all agree that there has been a massive amount of uncertainty in 2020. I think we will all be happy when we can kiss this year good-bye!
Nashville, TN
Davidson County holds a healthy inventory rate of 3.4 and house sale price per square foot of $188. The inventory rate is higher then last month but still very low. A more “normal, healthy” inventory rate is 6%. Davidson County’s inventory rate tells us that it is a very sought after area to move into. If you are a home owner and want to move out of the county you will do very well with your home sale price. If you want to sell but don’t want to move out of the area expect not to make a profit unless you’re down sizing. You’ll be able to sell high but will need to buy high.
Williamson County’s house inventory rate is 4.3. This is a little higher then last month. The price per square foot is $185. This is still 25% higher then the national average. This is one financial reason to chose the Nashville area to move to. Property value tends to be higher then many other areas and there has been a steady increase in value by about 6% each year.
Davidson County is more popular then Williamson County due to it’s close proximity to downtown Nashville. However, Williamson County is very appealing to families with children in school. The Williamson County schools have some of the highest ratings in the country. The school ratings are typically a 9 out 10. In addition, the schools put a lot of emphasis on higher quality staff. There is a large sport selection and there are a ton of clubs to get involved in. If that isn’t enough reason to love Williamson County for its schools there’s one more notable feature. Every High School in Williamson County requires at least 10 hours of community volunteer service from it’s students.
If you work downtown there is a small area of Williamson County’s north portion in the 37069 zip code that is in an ideal location for you. We have buying agents that specialize in this area. Schedule a consultation to learn more.
