Many folks are wondering if the home market has come back yet in Nashville, but back to where and when? Are we looking to see if it’s back to “normal” (before the big jump) or to when prices were at their peak? The NAHB provided data regarding the major markets in the United States, and here’s what I found out about ours…
The starting point is near the end of 2001, before prices significantly increased over the next five years. The peak for pricing occurred around the end of 2006. The prices continued their decline until about the end of 2011. Since then, they have steadily moved up in the Nashville home market. But just how far have they climbed?
The easiest way to illustrate is by using an example of what an average home’s price would have been at each time interval mentioned above.
If a home sold for $250,000 in 2001, then…
In 2006 it would have sold for approximately $290,000 (up 16%); and
In 2011 it would have sold for approximately $202,000 (down 30% from High and down 19% from 2001); and
Currently, it would sell for approximately $233,000 (up 14% from Low, down 20% from High and down 7% from 2001).
This is a very simplified example and does not take into account numerous other variables, but it does give us an interesting overview of our real estate market in Nashville, the last 12 years.
The fact is we are approaching what we would call “normal” pricing rather quickly. In only two years’ time, the prices have increased nearly 15% from when the prices were at rock bottom. Also, supply is low in many areas! It’s a seller’s market in Nashville, especially if a home was purchased sometime before or after the prices peaked in 2006. These numbers take into account all of Nashville, so some areas are definitely ahead of schedule and have returned back to “normal” already!
We’re not where we were in 2006 and it may take some time to get there. Some people think it will never happen again, especially with the more recent tighter lending requirements. But based on the fact that there will always be a need for real estate property in this great Nashville community, I would say it’s just a matter of time…
If you would like to find out how your specific area is doing, just give us a call at 615-261-8141. We’d be glad to look into it for you!!
Jane Pfiffner is a Licensed Realtor for Berkshire Hathaway Home Services Woodmont Realty – 615-261-8141