Last December we published an article with our 5 predictions for Nashville Real Estate in 2015. As expected, we had a few hits and misses, but overall I feel that we were fairly close to the way things shaped up in 2015.
I started off picking the four areas in Nashville that I thought would have the most growth. I went with 8th & Melrose, Wedgewood Houston, The Nations and Germantown. This prediction was pretty much spot on. Wedgewood Houston is one area to continuously keep an eye out for as Core Development looks to provide a fresh and vibrant atmosphere that embraces the live, work, play lifestyle so many people desire these days.
Strength of Housing Market
Our second prediction was that Nashville’s real estate market would continue to be one of the strongest in the nation. I knew this would be a slam dunk after looking at various market reports and predictive analytics from a couple different market research firms. By April, the Nashville Business Journal reported on an article which lists Nashville as the 3rd hottest housing market in the U.S for 2015.
And Then I Was Wrong
My third prediction was that mortgage interests rates would rise. All the experts were jumping up and down, warning that this would happen just like they did the year before, but this time I was sure that they were right – I was wrong. In fact, rates even went down slightly compared to last year. So, I learned a great lesson in the process: If the mortgage experts are consistently wrong about the direction rates are heading, then this is probably one prediction I need to stay away from. By the way – they’re once again claiming that rates will rise next year.
Rent Vs Buying
Oh, but how sweet the taste of redemption is. The next prediction was that rent prices in Nashville would continue to increase. I based this off the fact that Nashville has very limited inventory for both homes for sale and rent as well as a booming population that is expected to continue sustained growth through 2035. Then in August of this year, Apartmentlist.com rated Nashville as one of the top 5 cities with fastest growth in the nation. So when you hear that it is more expensive to rent than buy a home in Nashville, now you know it’s not just realtor® babble.
Nashville Home Values
To round out the list of predictions, I stated that home values would continue to rise. The average home value in 2014 rose about $20,000 and while that’s not easy sustain, there was still room for home prices to rise. So far for 2015, the average home price for the year is $231,925 – more than a $15,000 increase over last year’s numbers.
Nashville’s real estate market had a ton of positive growth this year and it was fun to take a look at what the future might hold for this great city. There are a lot of new initiatives and projects slated for next year that will continue push Nashville’s market in an upward trajectory. Next month I’ll look into my crystal ball and take a stab at predictions for 2016. I’m sure I’ll miss on a few, but hey- so did Michael Jordan.