nashvillehomeblog.com

Well, it’s official now. The Tennessean and the Greater Nashville Realtor’s Association have acknowledged that we are in a slowing housing market. In an article on the front page of today’s paper, GNAR president Mandy Wachtler says “Probably, the prices are correcting”. The syntax of that quote suggests it may have been taken out of context, but it’s the first time I’ve seen official comment in the local press that was anything but upbeat. As I’ve noted in previous posts, our market has been slowing all year. The initial slowdown was the result of a smaller pool of buyers who were able to qualify for mortgages under more stringent guidelines. However that slowdown has accelerated over the last three months, and is likely due to the economic uncertainties that go along with rising energy prices and a falling stock market. I don’t think the slump will deepen much more, but I don’t see a turnaround before next spring.

The good news is that the fundamentals that have supported growth in our area are still positive. According to the article in the Tennessean, census figures show population growth continues in the midstate area. And the latest report from the Bureau of Labor Statistics shows we are still adding jobs as well. HUD puts median income at $63,200 for the area which means that half of midstate residents have enough income to qualify for a mortgage of at least $190,000 which is well above the median home price of $183,615. Additionally, the PMI Group which analyzes risk for mortgage insurors estimates that there is only a 1.3% risk that home prices in Nashville will be lower two years from now.

What does all this mean to you? If you are a seller in today’s market, you’ll need to be sure your presentation and pricing are on target. If you are a buyer, opportunity abounds while risk remains minimal.