When people discover a fabulous city like Nashville, word spreads fast. A growing market is a good thing, but a balanced market, with ample housing for new Nashvillians, is also a good thing. Just ask a potential buyer. Home sellers in Nashville are calling the shots, just as they have in recent years.
A lack of housing leads to pushing and shoving amongst wannabe homeowners (metaphorically speaking, of course), who are vying for the same homes. This is yet another reason for buyers and sellers to be armed with real estate agents. Primarily because they know the market well and generally push and shove in a more civilized manner. A buyer in a seller’s market means stiff competition and aggressive buyers have the upper hand.
Just think back to Econ 101, if you were awake. Chapter one: Supply and Demand. There aren’t enough homes in Nashville (and other hot markets in the country) so sellers have the upper hand. They had it in 2021 and will continue to have it in 2022, albeit, with a slightly lower hand.
Prices are up, and life is good for sellers. But there’s a catch (there’s always a “catch,” right?). Most sellers, unless renting (also competitive), or moving in with Mom and Dad, are also buyers. For some reason, people like a roof over their head. Go figure.
The disparity between the buying and selling markets may taper off a bit in 2022, but Nashville and its submarkets will still rock home sales. The fastest-growing submarket of the Nashville Metro Area is the southern submarket, which includes the cities of Murfreesboro and Franklin.
Economists predict an increase of 8 to 10% on home prices in Nashville in 2022, compared to the 22% increase in 2021. Not the skyrocketing increase of last year, but still impressive. The Nashville market is expected to remain scalding, thanks to its high job growth, good weather, and quality of life, relatively low cost of living, the lack of income taxes, and the success of remote working during COVID, which makes living anywhere possible.
For those who want to delve deeper into economics and housing costs, there is a plethora of information out there. Otherwise, the predicted highs and lows of Nashville’s housing market, in 2022 are:
- Housing prices: High (but lower than the national average)
- Housing supply: Low
- Housing demand: High
- Cost of living: Low (relatively)
- Housing competition: High
- Average days a home is on the market: Low
- Job growth: High
- Quality of life: High
- Real estate market activity: High
- Interest rates: Higher than 2021 (in all of the US)
- Inflation: Higher than 2021 (in all of the US)