As we closed out 2022, we saw a pause in the market activity. Inventory increased and prices leveled off as interest rates soared past 7%. The result was buyers and sellers both being more inclined to take a watch and see approach. To begin 2023, interest rates have recently reset to what is historically a good average rate around 6% or below. You can see by the graph above (left side) the historical rates averaged 5.97% from 1990-2021. The second graph (right side) shows how much this change in interest rates (7% to 6%) would significantly change a house payment.
Nashville continues to see signs or growth as we enter the Spring market. For buyers, this couple of months before the peak spring season is an opportunity. There is inventory, the market is not flooded with buyers creating bidding wars on the home of your dreams, the rates having come down means more affordable payments. For sellers, who many times are also going to buy, they have an opportunity to cash in on the rapidly accelerating appreciation many have seen on their homes over the past few years and use it toward their next investment.
None of us have a crystal ball, but demand for homes in Nashville is still very high with a large amount of that demand coming from people relocating to our great state. The articles below all speak to there being no signs indicating that this demand is waning and while we are seeing inventory increase, it is still not to the level to meet the forecasted demand. We seem to be in a fantastic window of opportunity right now. Want to learn more about navigating the market as it shifts? All of us at KPG are experts in the economics of the Nashville Real estate market.
Give us a call!
kyne property group