Whenever you have a market experience such astronomical success as Nashville has encountered the past five years, the inevitable question arises. When will the housing market slow down? There is never a simple answer to this question because the real estate market is impacted by numerous factors, largely: the local economy, national/international factors, continued city/infrastructure growth.
While it is a complex issue, if you look at other US cities who’ve experienced the type of growth Nashville has experienced and other predicating factors, we can make reasonable assessments of the market. 2018 is predicted to do marginally better than 2017, which was Nashville’s most successful year. The next few years look to continue that pattern of growth.
Here is a deeper look at how three varying factors play into our market’s continued growth:
1. A strong micro economy.
The Middle Tennessee’s economy is stable and strong with numerous sources feeding our low unemployment. With 9 major industries (music, health care, tourism, higher education, finance, automobile production, insurance, printing/publishing, and technology manufacturing) feeding our economy, we have many jobs to go around, creating stability in paychecks and home ownership.
We also continue to receive national recognition for a tourism hotspot as well as a hot housing market. In fact, Zillow recently rated Nashville number eight in the top housing markets for 2018.
2. Macro level impacts on our economy.
This includes political climates at the national and international levels. When there is more uncertainty at a national or international level, it will eventually trickle down into the local housing market, but that is where a strong micro economy is important and helps withstand some of the bigger hits.
3. Continued attraction of the corporations and individuals.
A city’s growth is circular. A strong and stable job market attracts individuals to a city, growth catches the eye of corporations looking to set up show, which in turn provides more jobs into the economy. Both feed into the other, and a city keeping up with the demands of growth to our infrastructure matter. And we can all get involved in shaping Middle Tennessee to be the best place to live – in 2018 and beyond.
The experts all agree they don’t see Nashville slowing down in 2018, but a higher inventory will matter in higher sales in 2018.
If you’re considering buying or selling in 2018, I will use my easy-going and low-pressure approach to sales to help you reach your housing goals.