Navigating Nashville's Residential Market
Whether you've lived in Nashville for a month or a lifetime, there's one thing everyone can agree on- Nashville's housing market is arduous to navigate. Currently one of the nation's hottest destinations, Nashville's real estate market has experienced exponential growth over the past five years and isn't projected to slow down anytime soon. Zillow recently reported that Nashville's residential real estate market is projected to be the U.S.' third hottest market in 2021.
This rapid growth continues to be kindled by the relocation of significant companies such as Oracle and Amazon to the downtown area. New developments sprouting up across Nashville have also attracted high-profile businesses and continue to spark interest across the U.S. While cranes dot the Nashville skyline and continued growth seems inevitable, many have begun noticing the growing pains that the rapid urban expansion has caused.
Impact of Growth:
Perhaps one of the more obvious growing pains Nashville residents are experiencing is within the residential housing market. Rocket Homes notes that Nashville's median closing price has risen over twelve percent in the last year while inventory plummeted by over 6% in the last month alone. Nashville's residential real estate inventory is dwindling, prices are inflating, and the market quickening. For most, the opportunity to purchase a home within reasonable budgetary constraints seems dismal.
With the right guide, however, purchasing a home in Middle Tennessee within budget is still possible. Here to guide us through the tumultuous waters of Nashville's housing market, we've gathered advice from some of Nashville's brightest up-and-coming residential real estate agents.
Jack Costigan, Affiliate broker and Realtor at Parks at Home, and Dana Olsen, Realtor at the Ashton Real Estate Group, have witnessed Nashville's surge in residential real estate firsthand. Dana and Jack continue to assist homebuyers in navigating the competitive market and have created unique strategies to help clients meet their housing goals. Both carefully monitoring Nashville's market and upcoming trends, Dana and Jack provided insight on Nashville's current residential real estate market, provided tips to navigate it, and shared their outlooks for Nashville's future.
Navigating the Market:
Perhaps the most resounding advice for buyers navigating the residential real estate market was to be prepared. "Put your best foot forward from the start," Dana shared. "Come up with a few strategies with your agent, stick to them, and stay committed". Navigating a hot real estate market can prove challenging, but opportunities to get creative and set yourself apart from other buyers are still out there, Dana noted. Jack emphasized the importance of preparedness and suggested that buyers have a letter of pre-approval if planning to finance their purchase. Both professionals shared that preparing as much as possible before placing offers will assist buyers in making informed, yet timely decisions to remain competitive in such an active market.
Housing inventory in Nashville's current market is disappearing faster than it can be built. "You have to act incredibly quick in a market like Nashville," Jack noted. "You need to be ready to go see a home as soon as it hits the market- the days of waiting a day or two to tour houses are over". It is important to note, however, that acting fast should never constitute making an uninformed purchase. To make an informed purchase in such a competitive market, Dana recommended home inspections and home warranties, especially for first-time homebuyers.
Remaining realistic with a housing wish list and staying within budgetary constraints is critical. Jack reminds his clients that in the current market, they may have to settle with an 8/10 home and not their 10/10 dream home. It's important to remember home renovations and updates are a great option to give your new property a facelift after purchasing. While most buyers would love a polished, move-in-ready home, opting for a structurally sound property with potential for renovations can be an excellent option.
Remaining realistic with budgetary constraints is also essential in a hot real estate market. "With how homes are selling over market price, adjust your budget", Jack suggested. "If your budget is $750,000, try looking at homes in the $650,000-$700,000 range so you have the ability to offer over asking price and hopefully win the offer." Retaining an allowance for home improvements and maintenance is also an important factor to consider when determining your financial capacity. Working with an experienced financial advisor and real estate agent is essential in determining your financial limits and goals when purchasing a home.
When asked to provide advice for prospective homebuyers, Dana's immediate answer was to remain positive and patient. "Almost all buyers are having to put in at least a few offers before they get one accepted", Dana noted. Navigating disappointment is something most homebuyers will be forced to do in a market as hot as Nashville's. However, remaining patient and optimistic while creatively pursuing new leads has proven successful for both Dana and Jack's clients.
Nashville's rapid growth isn't projected to slow down anytime soon. As industry giants continue to move operations to Music City, the housing market will continue to boom. "Projects like this ensure [Nashville's] growth for years to come," Dana shared in response to Oracle's announced relocation to Nashville. "Housing cannot be built fast enough in Nashville, and the list of companies and businesses moving to Nashville continues to grow."
Jack shared that in addition to Nashville's physically expanding skyline, Nashville will continue to increase in popularity amongst destinations in the U.S. "Long term, I believe the city of Nashville will eventually become a powerhouse in commercial and residential real estate," Jack stated. "Nashville is already a city that attracts a lot of individuals and I believe in 10 years the city of Nashville will be one of the best cities to live in the United States."
Nashville's booming economy and market may be accompanied by growing pains in the housing market, but it's certainly an exciting time to live, work, and play in Music City. As Nashville roots itself amongst the top destinations in the United States, one can't help but be excited for what the future holds.
About the Contributors
Dana Olsen is an affiliate broker and Realtor with the Ashton Real Estate Group of RE/MAX Advantage. With a seasoned history of residential real estate investment, Dana specializes in representing buyers and residential relocation across Middle Tennessee.
Jack Costigan is an affiliate broker and Realtor for Parks at Home. Passionate about teaching, Jack utilizes real estate as a platform to educate young professionals on building wealth early in their careers.
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