Finding the perfect house in Nashville can sometimes feel like a massive game of musical chairs. The latest market report shows that our housing inventory continues to be much lower than 2014, yet the demand is still increasing as Nashville has become one of the "it" cities in the U.S.
So why is it so hard to find a home in Nashville and what can you do to put yourself in the best position to have a successful home search? Lets take a look at the 5 factors below that are the primary culprits of your mounting frustration during your search for that perfect home.
1. Increased Rental Rates:
A flood of prospective homebuyers have entered the market as Nashville rent prices continue their upward trend. In fact Nashville rents have increased 2.2 times faster than the national average. Although there are many apartment units currently under construction, which should ease rental prices, many renters have had enough as it has become cheaper to own than rent in most areas now.
2. Homeowners Trying to Time the Market
Home values in Nashville have seen historic increases and many homeowners are staying in their homes longer with the belief that the rise in home values will continue for quite some time. However, it does appear that the increase in home values is starting to slow as the last two months saw no change in value. If this pattern continues, you should expect to see a flurry of homes hit the market as homeowners try to cash out on the high end.
3. Nowhere to Go
Another factor preventing homeowners from putting their home on the market is that once their home sells, they are then in the same boat with all the other buyers who are trying to find a home in a market with limited inventory. Instead, they end up staying in their home, which inadvertently adds to the Nashville home inventory squeeze.
4. Low Interest Rates = More Competition
Although I don't think you're going to hear anyone complain about current interest rates, there is an adverse affect that they have on your home search. More buyers enter the market when interest rates are lower, creating more competition for you. Also, as mentioned earlier, with rents increasing, the lower interest rates on 30-year mortgages makes buying a home a more attractive option for renters.
5. You're Using the Wrong Technology
Zillow and Trulia are great sites and many people use them for their home search. But, in a tight real estate market like Nashville, using these tools can be like trying to hammer a nail with a screwdriver. The reason for this, is that they sometimes have a lag time of 2 to 3 days before a property shows up on their websites (sometimes not at all). So by the time you see a home you love, someone else has already made an offer and the house is under contract.
This is why we set up all of our clients on email alerts directly from the MLS as soon as homes are listed that meet your criteria. This allows you to hopefully see the property first and beat the rest of your competition to the punch, ultimately landing you your dream home. To get set up on email alerts for new listings, click on the button below: