Nashville Housing Market Q&A
Studio’s Jeff Tucker is a veteran of the mortgage loan business. Last year, he served as president of the Tennessee Mortgage Bankers Association. We asked him to provide his perspective on the housing market in Middle Tennessee.
Q: How does Nashville’s housing market compare to other major cities in the United States?
Jeff: One of the cities we’re frequently compared to is Austin. They’re a few years ahead of us in growth, but we’re catching up quickly. Austin currently has average home values of about $520,000. Meanwhile, Nashville still has relatively low home values, averaging about $330,000. Austin’s average surpassed that number in 2017.
Q: Is it realistic to expect local home prices to continue to rise?
Jeff: Obviously, no one can know for sure, but a lot of economists are expecting the housing market to continue to steadily climb. US real estate is very popular for investors and international buyers, and Nashville remains very attractive, especially when compared to cities of comparable sizes, such as Austin, Oklahoma City, and Seattle.
Q: How are interest rates effecting home buyers and home owners?
Jeff: Since the start of this year, the rates have ticked up a few fractions of a percent, but they’re still generally much better than those of previous decades. The low rates have been enabling buyers to get “more house” for the same payments and owners to take advantage of refinance benefits. We close refis daily, and have often seen families save money while either getting cash out or reducing their payments.
Q: What options exist for low to moderate income households in this housing market?
Jeff: There are great programs for these households. A lot of people are scared off by thinking that they have to have at least 20% for a down payment, but that simply isn’t the case in a lot of situations. FHA, USDA, and HUD insured mortgages can often close with 0-3% down. And community programs such as our Down Payment Assistance Program exist to help qualifying buyers get homes. For anyone who feels that their situation may not be ideal, I’d strongly suggest talking with a member of our team. You’ll likely be surprised at what’s possible.
MoreStudio’s Jeff Tucker is a veteran of the mortgage loan business. Last year, he served as president of the Tennessee Mortgage Bankers Association. We asked him to provide his perspective on the housing market in Middle Tennessee.
Q: How does Nashville’s housing market compare to other major cities in the United States?
Jeff: One of the cities we’re frequently compared to is Austin. They’re a few years ahead of us in growth, but we’re catching up quickly. Austin currently has average home values of about $520,000. Meanwhile, Nashville still has relatively low home values, averaging about $330,000. Austin’s average surpassed that number in 2017.
Q: Is it realistic to expect local home prices to continue to rise?
Jeff: Obviously, no one can know for sure, but a lot of economists are expecting the housing market to continue to steadily climb. US real estate is very popular for investors and international buyers, and Nashville remains very attractive, especially when compared to cities of comparable sizes, such as Austin, Oklahoma City, and Seattle.
Q: How are interest rates effecting home buyers and home owners?
Jeff: Since the start of this year, the rates have ticked up a few fractions of a percent, but they’re still generally much better than those of previous decades. The low rates have been enabling buyers to get “more house” for the same payments and owners to take advantage of refinance benefits. We close refis daily, and have often seen families save money while either getting cash out or reducing their payments.
Q: What options exist for low to moderate income households in this housing market?
Jeff: There are great programs for these households. A lot of people are scared off by thinking that they have to have at least 20% for a down payment, but that simply isn’t the case in a lot of situations. FHA, USDA, and HUD insured mortgages can often close with 0-3% down. And community programs such as our Down Payment Assistance Program exist to help qualifying buyers get homes. For anyone who feels that their situation may not be ideal, I’d strongly suggest talking with a member of our team. You’ll likely be surprised at what’s possible.
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Blog #1: Planning to move? Here’s what you need to know.
It’s your sanctuary, your place of rest, your family’s stomping grounds. Finding and settling into the perfect home brings such a rewarding feeling, but let’s be honest: The process leading up to it is no cakewalk. There’s a lot that goes into buying a home, but that doesn’t mean it has to be a stressful experience. With the right knowledge and preparation, you can ensure the whole process goes off without a hitch. If you’re planning a move soon, be sure to consider the following things:
The Neighborhood
Before you even start looking at houses, think about the area where you want to live. Location is the one thing you can’t change, so this needs to be determined up front. Do you have kiddos? Is walkability important? How about the school district? Even if you don’t have children, buying in a good school district can help with resale down the road. Don’t forget about your work commute, either — do you need easy access to highways or public transportation? Once you’ve settled on a neighborhood, find a real estate agent who’s a specialist in that area so you can maximize your potential for finding the right home. (If you need a referral to an agent, I’m happy to provide one!)
Your Budget
Buying a home is a financial decision, and as such, budget should be a driving factor in your decision-making process. If you’re moving up, consider how your monthly payment will increase and whether you’re prepared to handle that. If you’re moving to a fixer-upper, take into account any extra expenses you’ll incur with renovations. Also, research the cost of living in the area, as well as property taxes and HOA fees. And of course, don’t forget to budget for the actual move. There’s a lot to consider when it comes to budgeting for a new home, but I can help you work through all these factors and help you line up the right financing based on your situation.
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MoreIt’s your sanctuary, your place of rest, your family’s stomping grounds. Finding and settling into the perfect home brings such a rewarding feeling, but let’s be honest: The process leading up to it is no cakewalk. There’s a lot that goes into buying a home, but that doesn’t mean it has to be a stressful experience. With the right knowledge and preparation, you can ensure the whole process goes off without a hitch. If you’re planning a move soon, be sure to consider the following things:
The Neighborhood
Before you even start looking at houses, think about the area where you want to live. Location is the one thing you can’t change, so this needs to be determined up front. Do you have kiddos? Is walkability important? How about the school district? Even if you don’t have children, buying in a good school district can help with resale down the road. Don’t forget about your work commute, either — do you need easy access to highways or public transportation? Once you’ve settled on a neighborhood, find a real estate agent who’s a specialist in that area so you can maximize your potential for finding the right home. (If you need a referral to an agent, I’m happy to provide one!)
Your Budget
Buying a home is a financial decision, and as such, budget should be a driving factor in your decision-making process. If you’re moving up, consider how your monthly payment will increase and whether you’re prepared to handle that. If you’re moving to a fixer-upper, take into account any extra expenses you’ll incur with renovations. Also, research the cost of living in the area, as well as property taxes and HOA fees. And of course, don’t forget to budget for the actual move. There’s a lot to consider when it comes to budgeting for a new home, but I can help you work through all these factors and help you line up the right financing based on your situation.
The Move Itself
Once you’ve found a home, gone under contract with the seller, and started the mortgage process, it’s time to begin packing and planning for the big move. The key to a smooth move is organization. Here’s a handy checklist to help you get started on the right foot:
- Do a purge. Begin by going through and getting rid of unnecessary stuff, from clothing to furniture to old holiday decorations. This will not only make for a lighter move but will also help you start fresh in your new home.
- Pack smart. Save some money as you pack by using items you already have. For example, fill up laundry baskets and suitcases with non-breakables, and wrap delicate items like glassware in kitchen towels and linens. Be sure to label every box and, if you want to be extra organized, keep an inventory list of what’s in each box and which room it should go in. Check out more clever packing tips and tricks.
- Hire legit movers. A reputable moving company can save you a lot of headaches on moving day. Check that they are licensed with the Federal Motor Carrier Safety Administration (FMCSA), and only accept Full Value Protection insurance to cover any damage to your belongings. Be sure they perform a thorough in-home estimate, and don’t move forward until you have an agreement in writing.
- Plan for moving day. Outline your game plan for moving day well in advance. Determine what you’ll do for food, lodging, and transportation. Can you arrange for someone to watch the kids, or do you need to find some games and movies to keep them entertained throughout the day? Don’t forget to make room for the dog or cat, or plan to drop it off at the pet sitter’s to make its life and yours a lot easier.
Buying and moving into a home is one of the biggest milestones in a person’s life, whether it’s your first time or your third. When you know what to expect and what steps to take along the way, you can make finding home sweet home a fun and enjoyable experience.
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