NASHVILLE REAL ESTATE: COMPLETE ANALYSIS

The Nashville real estate market has seen a surge in recent years and even months.

This upward trend, however, hides a number of disparities. Obviously, as is often the case in real estate, not everything is positive.

This is why it is important to dwell in more detail on the deep characteristics of this city.

As a reminder, Nashville is the capital of the state of Tennessee in the United States. The city is particularly known for being a music city with renowned musicians.

The city is more attractive than ever for buyers, but we will analyze whether investing in Nashville is really worth it.

5 Things to Explore in Nashville

Economic, social and demographic fundamentals

In 2018, American newspapers joked that Nashville was no longer "the music city" but rather "the work city."

In fact, Nashville is characterized as being the city with more than one million inhabitants and the lowest unemployment rate.

The economy is based mainly on technology, services, education, health and industrial sectors.

It's no surprise, then, that Nashville has a very large working population. The average age of residents is around 33.

In fact, in 2017, Nashville was ranked as the fastest-growing urban area.

Some figures that illustrate the demographics:

40% received a university degree

65.6% are owners of their main residence

43% of residents are married

The Nashville real estate market presents an excellent opportunity for real estate investors looking to market to college students.

This is partly due to the fact that it is the state capital, and partly due to the fact that it is simply the largest city in the state.

Nashville Real Estate Market Trends and Predictions

Nashville Housing Trends and Statistics:

$465,000: The median sale price for a single-family home in March 2023, according to Greater Nashville Realtors data. This is up from $450,000 in January and February and above the national median price of $375,700.

54: Average number of days an ad spends on the market before being sold.

98%: Sales-to-List Price Ratio, per Redfin. This means that a typical home sells for 2% less than its list price.

1.4%: Average closing costs in Tennessee, as a percentage of the sale price, according to data from ClosingCorp. So, on a home with a median price of $465,000, closing costs would be about $6,500.

Property values in Nashville and Davidson County are expected to increase over the next 12 months.

Overall here in the United States we have seen people moving out of big cities to suburbs across the country.

Nashville has also seen an influx of buyers from larger markets like Seattle, New York and California.

Another factor behind the increase in out-of-state homebuyers is that Tennessee is one of seven states with no income tax and one of two with no earned income tax.

This has increased demand for housing. High demand and low inventory are driving rapid increases in Nashville's housing prices.

Where to invest in real estate in Nashville?

Here are the ten Nashville neighborhoods with the highest real estate growth since 2000:

Maxwell Heights

Rolling Acres / Lockeland Springs

East Nashville

Greenwood/Lincoln College of Technology Nashville

Shelby Hills

East Hill

North Nashville

German city

Historic Edgehill/Waverly

Fisk Meharry / Fisk University

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Should You Buy Real Estate in Nashville?

So the real question is:

Should You Buy in the Nashville Real Estate Market?

As mortgage rates remain high, homebuyers across the country are feeling the effects.

Even though the market remains strong in terms of sales, transactions are somewhat slow.

For a home seller in Nashville this means more time to sell the property.

What's important in such a market is to fully understand the property's value. In this situation, a real estate agent is often recommended.

If you are a buyer, the inventory of homes for sale has increased recently, so you have more options.