Now that 2017 is underway, I wanted to give you a quick look at the overall numbers for our real estate market in 2016 and also give you an idea of what to expect in 2017.
Home prices in Davidson County saw an average appreciation of about 10% in 2016. In fact, the appreciation rate was the same for 2014 and 2015, so we’ve seen a 10% increase three years in a row.
That is a huge amount of appreciation for Davidson County, so much so that those sort of numbers are usually unheard of for our market. Traditionally, Nashville home prices usually only appreciate by 3% to 5% each year, so 10% year over year appreciation is monstrous.
We desperately needed a few years of strong appreciation, as the recession caused an average investment loss of 12% to 15% on people’s homes. Some neighborhoods saw stronger gains than others, so contact me or check out the home value link to see what is happening in your neighborhood. Don’t forget when looking at your neighborhood to take into consideration the ages of the homes, whether homes have been renovated, and if there is new construction.
Speaking of new construction, let’s dive into my predictions for the Nashville market in 2017.
Although the market looks like it will stay as active as it was 2016, appreciation might slow a bit. Home builders have shifted from the luxury market to the first-time buyer market. We are going to see a lot of townhomes and condos, which will be at a lower-than-average price point.
Most of the new construction that’s been happening over the last few years downtown has resulted in apartments, not townhomes and condos like some might think. So, as new construction moves to townhomes and condos, I would be surprised if we were anywhere near that 10% appreciation mark at the end of 2017.
I do believe the pace of our market will continue to be very intense. We are going to have a lack of inventory and high buyer demand. It will continue to be a seller’s market, especially if you have a home that looks pretty. If your home is turnkey and ready, it will sell immediately and maybe for more money than it’s listed for.
Click below you would like to find out what is happening in your neighborhood, or if you have any other questions, please feel free to give us a call or send us an email. We would be more than happy to help!