For the last few years Nashville has enjoyed a strong real estate market. 2015 looks to be very encouraging as well. It’s not always easy to predict what will happen in the market , but here’s our best shot at 5 predictions for Nashville Real Estate in 2015.
#5 THESE AREAS WILL SEE THE MOST GROWTH
Wedgewood Houston: Wedgewood Houston is one of the hottest areas in Nashville right now for a couple of reasons. Popular areas like 12 South, Sylvan Park and Belmont have become price prohibitive for some, so people have turned to areas like Wedgewood Houston instead. Core Development has also just broken ground on the area’s first mixed-use development that includes 490 residential units and retail. Combine these two factors with excellent location and you have the makings for one of Nashville’s next big hits.
Germantown: Germantown isn’t really a new name when it comes to development in Nashville, but the new Sounds stadium being built here will propel the growth of the area even faster. Developers are also planning a 276 residential mixed-use building with retail, which adds to an already booming area.
The Nations: The development in this area is as fast paced as any other part in the city. It seems like there is redevelopment on every corner which has truly begun to reshape the identity of this community. Developers are also hoping to create a walkable lifestyle on 51st Ave much like that of 12 South.
8th & Melrose: If you’ve followed any of our other blog posts, you know that this is one area we keep coming back to. Sandwiched between 12 South and Wedgewood Houston, 8th & Melrose has no other option than to see dramatic growth. There are two large scale mixed-use developments planned along 8th Ave and the commercial buildings near Zanie’s comedy club are primed for redevelopment.
#4 NASHVILLE WILL CONTINUE TO HAVE ONE OF THE STRONGEST REAL ESTATE MARKETS IN THE U.S.
Nashville had a strong showing last year and the country is starting to take notice. In a recent post on Trulia.com, their writers tabbed Nashville as one of “The Top 10 Real Estate Markets to Watch in 2015”. Most experts agree that Millennials will be the main driving force in the real estate market. This bodes well for Nashville as Forbes.com has it listed 10th among “Most Popular Cities for Millennials.”
#3 INTEREST RATES WILL RISE
We heard the same thing last year from all the economists and we’re starting to hear it again for 2015. It seems like only a matter a time before rates begin to creep up, but Forbes.com quoted Freddie Mac’s chief economist Frank Nofthaft that he “expects a more cautious average of 4.5% in 2015”. Here’s to hoping the experts are wrong 2 years in a row.
#2 RENTS IN NASHVILLE WILL INCREASE
Nashville is slated to have the highest percent of rental inventory added in the nation next year with 4,327 apartment units, but most experts don’t see rent prices decreasing. Some factors that could play into this include; already high demand for rentals, Nashville’s strong job market bringing in additional renters and high construction costs. With this in mind, it may be a great time to reassess your rental situation depending on your circumstances.
#1 HOME VALUES WILL CONTINUE TO RISE
We’re going to piggyback off our last prediction because once again we’re talking about high demand, low inventory and an influx of people due to a strong job market. This means homeowners once again should see nice gains on their property values in 2015. The latest report from the Greater Nashville Association of Realtors backs this up with some good old fashioned numbers. The report showed that the median residential price for a single-family home during November was $215,000, and condominiums, it was $165,256. This compares with last year’s median residential and condo prices of $195,000 and $150,000, respectively.
*It should be noted that these are just predictions and all information should be verified for accuracy before buying or selling any real estate property.