Homes.com’s Local Market Report was created to bring you updates on the status of the U.S. housing market recovery. The most recent report shows that in July, 55% of the top 300 U.S. markets have made a full recovery after the housing crash. Nashville, TN is among those cities which have exceeded full recovery. As of July, Nashville has had over a 103% rebound.
Sarah Layson, owner and lead listing agent of Layson Realty Group, is consistently ranked in the top 1% of real estate teams in Nashville. Layson has agreed to answer some of our questions about the housing market in her area.
Homes.com: What changes have you noticed in your market’s inventory over the last 6 months and how does your inventory look now?
Layson: The home inventory in Nashville has been substantially down every month this year compared to 2014 and is actually the lowest it has been since 2007. In the hottest neighborhoods, it can be very frustrating for potential home buyers because they’re constantly running up against multiple offer situations or homes are being sold before they even hit the market. In a tight market like this, sometimes you have to create your own inventory, which is why we target expired or withdrawn properties that meet our buyers criteria, run Facebook ads and send out postcards in the neighborhoods they are interested in.
Homes.com: What’s your outlook on the recovery of home prices in your local market?
Layson: Home values in Nashville have recovered very nicely and are now higher than before the housing collapse in 2007. So far in 2015 we’ve seen about a 10% increase year over year. While values have remained flat for the last few months heading into winter, we still expect values to increase next year, although possibly at a slower rate as the market is starting to show signs of stabilizing.
Homes.com: Have you noticed an upswing in sales for a particular type of property (townhouses, condos, single-family homes, etc.)? If so, is there a specific segment of buyers which is driving the upswing for those properties?
Layson: Absolutely. Horizontal Property Regimes or HPR’s as we call them in Nashville have exploded in popularity. These properties are usually attached at some point in the structure and are basically a hybrid of a single-family home and a town home. One of the main driving forces behind this type of home is the limited inventory we’re currently experiencing in Nashville. HPR’s allow a builder to put multiple properties on a lot, which helps create more options for home buyers and ease some of the inventory woes.
Homes.com: What specific local economic factors are driving home sales in your area?
Layson: We’ve seen reports that Nashville’s population will add a million more people in the next 20 years. Obviously, the music industry plays a huge part in this, but beyond that, Nashville has also been recognized as one of the best cities to find a job in the U.S. With this influx of new residents, rent prices have also increased, which has made owning a home more affordable than renting in most areas of Nashville. Also, the fact that Tennessee has no state income tax is another great incentive that continues to attract many of our relocation clients.
Homes.com: What do you enjoy most about living in Nashville? When you are not selling real estate what do you do for fun?
Layson: I love the fact that Nashville has a small town feel, yet there is so much to do here. There’s always a festival or free concert going on and the city truly embraces southern hospitality and charm. In fact, Travel & Leisure recently named Nashville the friendliest city in the U.S. Nashville has a great food scene, so when we’re not working, it’s fun to go try out all the new restaurants that are constantly popping up. There are also over 100 parks throughout the city and great venues to visit like Cheekwood Botanical Gardens, Frist Arts Center and the Nashville Farmer’s Market.
Thank you to Sarah Layson for taking time to give us insight into the housing recovery in Nashville! For information on other areas, be sure to visit the full Homes.com Local Market Report.