Tennessee has seen growth unlike anything before over the past several years. As of the end of 2017, Northeast Tennessee saw tremendous increase in home value and home price.
Northeast Tennessee has also been credited with leading the entire region out of the recession that hit the rest of the country around 2008 and has continued to perform exceedingly well since that time.
What to Expect in the Tennessee Housing Market
According to Zillow, the average length of time a house stays on the market in Tennessee is approximately 95 days.
Nashville has primarily been the place to watch within the Tennessee housing market because the growth there has been quite substantial, at least until recently.
According to a study conducted by Arch Mortgage Insurance Company, predictions are being made that home prices should fall by 2019. Their reasoning is simple – home prices compared to income are much higher than they used to be, so the conclusion makes sense.
Even still, home prices continue to grow as the demand remains high, which means buyers should expect prices to steadily grow as the housing market in Tennessee is still a sellers’ market.
According to the Northeast Tennessee Association of Realtors, new home sales are expected to grow by as much as 7% in Tennessee. Prices are also expected to appreciate by as much as 4.7%, making the market appealing to home buyers.
Limitations of the Housing Market
As per the Tennessean, there are several factors that have the power to limit the housing market. Sales prices are beginning to drop because the most affordable housing inventory is almost entirely gone.
Expensive neighborhoods are taking longer amounts of time on the market before they are sold. In fact, the length of time that a house sits on the market has grown to 95 days compared to around 60 days going back a year and a half ago.
Then again, the time on the market also depends largely on the zip code in Tennessee. In some areas, houses sit on the market for over one hundred days, while in others, they might sit there for approximately half the time.
Influences on the Tennessee Housing Market
The demand for affordable housing is still high with the expectations of homes to be priced at under $300k, which is pushing the market forward.
Additionally, the lending market is healthy with low loan default rates and a significant decline in mortgage delinquencies compared to around ten years ago.
Other influences to the Tennessee housing market include the growing population of younger home buyers. Millennials especially are attracted to Nashville for its housing costs and available options.
Top Three Affordable Places to Live in Tennessee
There is a lot to consider when moving to a new location, and cost of living is likely one of the most critical factors. Consider these options as possibilities to help stretch the power of a dollar.
While Memphis is one of the largest cities in Tennessee, it is also surprisingly the most affordable in the entire state.
Median home prices fall at around $100k for a single-family home which is well under the $255k national average.
There is also plenty to do in Memphis. From music festivals to art exhibits, there is almost something for everyone in this city.
Bristol has a place in country music history as it is often thought of as the birthplace of the music genre. Even still, the median home price is quite affordable coming in close to Memphis prices.
Other costs of living expenses are also well below the national average making it entirely possible to live comfortably in this small town.
Because of the dedicated musicians in the area, residents can expect music festivals throughout the year along with different museums available to visit.
Manchester is another smaller town in Tennessee that has an affordable cost of living compared to other areas of the state.
In fact, the median home price in Manchester is right around $101k, right in line with both Memphis and Bristol.
Residents can also expect to enjoy the world-famous Bonnaroo Music Festival that takes place every year and attracts thousands of people.
Tennessee remains largely affordable with median home values being right around $156k with an expected 4% increase over the next year.
The median price per square foot is currently $122 USD with the asking price for homes having a median price of around $230k.
With a market health score of 8.2 according to Zillow, the Tennessee housing market is expected to continue thriving.
Some of the more expensive cities in Tennessee include Franklin, TN, home to stars like Miley Cyrus and Sheryl Crow. Less costly cities include Memphis and Knoxville, among others.