Nashville Real Estate Predictions for 2022
While global supply chain issues, rising inflation and a resurgent pandemic occupy the thought space of many Americans – and as the uncertainty of certain international financial institutions linger – the middle Tennessee real estate market was “white hot” in 2021 and 2022 shows few signs of slowing down.
Here are some predictions about markets throughout middle Tennessee for 2022.
More Out-Of-State Buyers
The business travel and convention business are still recovering, but as cities like Nashville, Franklin & Leiper’s Fork continue to make headlines across the country, Music City’s identity as a transplant-city is stronger than ever.
Tennesseans have welcomed their new neighbors from across the country with open arms and at a record-setting pace. You can lose count with the number of out-of-state license plates you see today from places like New York, California and Illinois, among others. Work with a relocation specialist to take out the guess work and make for a smooth transition.
Stabilization of Housing Market Inventory
Last summer, we saw our lowest months of available inventory, coupled with the reality there were more active agents than available homes for sale. That scarcity drove prices up and the bubble was closer to bursting. Since then, we have seen a healthy regression toward a more stabilized housing market in terms of months of available inventory, relieving pressure on all sides of the equation.
While the days of sight-unseen, all cash offers are not completely over, I anticipate homes listing at closer to true market value. This will lead to homes staying on the market for more time, and ultimately, less barrier to entry at the offer table, especially for first-time buyers.
With fewer buyers in the market and a fear of selling diminished, I also expect more homeowners (who had no reason to sell previously) might consider listing their homes.
Varying Lumber Costs
Lumber costs peaked last summer at over $1,500 per thousand board feet. While prices have recovered since then, the commodity price for lumber has varied drastically in the last five years and builders see little hope that will change anytime soon.
In some cases, initial building costs may only budget for builder-grade materials. And while spec houses can offer more room for customization, custom-built homes provide the greatest level of specificity and command the highest price to build. Work with experts in architecture and design to develop plans for your builder to follow.
I recommend attending open houses and model home appointments with a licensed agent. This will ensure your best interests are well-represented and protected. High-pressure sales tactics can be employed, so understanding factors that determine these outcomes are worth investigating and can help you make informed decisions.
Continued Demand for General Contractors & Home Services Professionals
Americans are spending more time at home. Work-from-home and online education quickly become the gold standard and way of the future.
Homeowners are adapting and now use tools like Zillow to monitor real estate, as many tech companies continue to market directly to consumers. Homeowners and buyers have a better understanding of their target markets. Some have taken on home improvement and learned new skills to tackle at-home DIY projects.
While we enjoy the increased flexibility, it can make scheduling home services projects in a congested household a challenge. Multiple in-home consultations and free estimates have turned you into a full-time Project Manager. Not to mention, these skilled laborers are often so busy, it can be difficult to pull them off an existing job.
Don’t be afraid to negotiate or get a second opinion! The most important thing is getting things done correctly the first time. Having a team of licensed and insured professionals can make all the difference.
