Bon Voyage 2013!
Nashville, Tennessee, like most other cities across the nation saw a vast relief from declined home sales and staggering home prices this past year. 2013 turned its cheek to the foreclosure epidemic the housing market was crippled by for the past several years and instead brought a rise in home values and a reincarnation of a seller’s market. Low mortgage rates, increased home prices, and low inventory encouraged many viable home buyers to get out of the real estate dugout, man up to the plate, and get in the ball game!
2013 urged thousands of home buyers hoping to take advantage of historically low mortgage rates and still affordable home prices. Buyers found a limited supply and were often forced into bidding wars with cash buyers and investors. Sellers cashed in on quick sales that were often above asking price.
So what should we expect from the Nashville housing market in 2014? Will it remain a seller’s market?
According to the National Association of Realtors, home prices are expected to rise in 2014 at a slower and more gradual pace than historical trends of the past. The housing recovery has stimulated home prices all across the country. Prices nationwide increased by 10.9%, driving the median price for existing homes up by $30K to $215K. That’s good news for home owners who have waited to sell or refinance their mortgage, making 2014 a good year to sell.
So what does this mean for buyers?
Don’t be weary if you’re in the market to buy because 2014 may just be a better year than 2013! NAR speculates that home prices could rise half as much as they did in 2013 because more supply will come on the market due to sellers who have been waiting for conditions to increase the way 2013 transpired. Like any other kind of trend, many sellers will be compelled to put their homes on the market because they want to cash in the way their neighbors have.
This may also pose as an advantage for young adults who still live with their parents or with roommates, and for young couples who rent. With unemployment rates being at a significant low young adults who have been hampered with the lack of jobs or insufficient income will be propelled to start moving out. They may rent at first, but with low vacanies, higher rents, and with the economy’s expansion rate, becoming a homeowner will quickly start to make more financial sense.
What About Interest Rates?
Many economists speculate that we are nearing an end to the record low mortgage interest rates. (Currently averaging about 4.41% on a 30-year fixed mortgage.) Rates under 5% may soon be a thing of the past, propelling many buyers who may be on the fence to hop over to home ownership before rates start to increase as the year unveils.
Resource: National Association of Realtors; Clear Capital; MSN Real Estate
If you or someone you know is interested in buying or selling
a Nashville Home please contact:
The Lipman Group | Sotheby’s International Realty
Office: (615) 463-3333 / Cell: (615) 509-1753