Guest Blogger: Greg Goodman -SWBC Mortgage Corporation, Branch Manager
Have you heard the buzz?
Nashville has been ranked TOP CITY to have a pricing correction within the next few years.
Are you worried? Don’t be.
This news might sound alarming for current homeowners of the Greater Nashville region, but to be quite honest – it’s really not that bad.
Here us out…
Bottom line is that home prices are growing faster than Nashville’s personal income can keep up. This a natural occurrence when we have the explosive growth in certain areas. This creates pockets of new markets meeting the needs of new homeowners who are needing to commute to work in an urban location. For this reason we will witness some areas slow down a bit while other areas will be booming. The report also lists Nashville as one of the top 10 hottest markets in the United States.
A new report from North Carolina-based Arch Mortgage Insurance company (stylized as Arch MI) finds that home prices have a 35 percent chance of falling in Nashville, tied with the Fort Lauderdale, Fla., area. Austin has the third-highest probability, at 25 percent, according to Arch MI.
In explaining Fort Lauderdale’s and Nashville’s rates, Arch MI cites “home prices growing faster than incomes, which is hurting affordability.”
For comparison, Arch MI estimates that the average probability of home-price declines for America’s 401 largest cities is 4 percent, which it calls “an usually low number.”
The report also found that Nashville is one of America’s 10 hottest housing markets, when looking at the country’s 100 biggest metros.
RESULT: The market looks to be leveling out and creating more affordable living for residents and relocating families. #GoodToKnow
-Greg Goodman, SWBC Mortgage Corporation
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