Forbes recently posted an article about the local growth of 10 Big U.S. Cities. Nashville ranked #4 on the list with a 27% growth from 2011-2016.
What does this mean for your property value? What does it mean for your next real estate purchase? It helps show why our area has had such as strong real estate market.
It’s a good indicator that growth will continue but no one (not even realtors) know what the next five years will bring Middle Tennessee. Growth on this scale will always bring jobs to the area. Jobs will bring people, and more people will help the housing market.
A client recently asked me, “When will the real estate bubble pop?”
My real estate team and I don’t have that kind of crystal ball. But history shows us that at some point the new construction levels will outgrow the demand placed in the area. There will come a time where the number of places to live will be well over the number of people who live here.
Factors that will, in part, dictate the growth of Nashville and the surrounding areas will be:
- National interest rates. Will they remain fairly low or go up over 5%?
- As long as rates are low, it will be enticing to those who are ready to buy or invest in real estate. When they are higher, people will be more selective in how they spend their real estate dollars.
- Local business growth. Will new businesses continue to move to Nashville?
- Current trends indicate Nashville is the next city to become another creative center of the United States. I mean, we’re Music City for a reason, right?
- New construction. When will there be enough new construction to level out the demand?
- When there is enough, we’ll see prices level off and/or lower.
Could we still be in the Top 10 and have at least 20% more growth in the next year? 10 years? That could be a challenge but it’s one that my team and I will face with you or your family. We’re always available to you for your real estate questions.