We’ve got a whole new year on our hands. And in the first weeks of a new year, I’m usually reminded of the old French maxim, plus ça change plus c'est la meme chose.
It applies to real estate – as it does to the rest of life – in several ways. We are always anxious to know what’s coming down the pike, we always make predictions, and we are always at least partially wrong. The more things change, the more they stay the same.
In the spirit of public service (we realtors live to serve) I’ll throw out a few thoughts and maybe 12 months from now we’ll look back and see how well I did.
Good News on interest rates
Current rates on a 30-year fixed are under 4% and, while they will float up and down a bit, all predictions are that they will stay there. Good news for buyers because their money goes farther. Good news for sellers, too, because more buyers are in the market.
Mixed news on inventory
Nationally new housing starts are up significantly from where they were a year ago. Good news for easing price increases because increased supply usually lowers upward pressure on prices. But Nashville is still growing very rapidly and everybody needs a place to live, so I don’t see a slow down here any time soon. Working with buyers this month, I’m already encountering multiple-offer-madness that I expected to see in the spring.
Mixed news on prices
See above. Prices will continue to rise here, and probably more quickly than state and regional average increases, which seem to be slowing. Good news for sellers. Not so good for buyers – even with those attractive interest rates.
Bad News on traffic
Sad to say this, but despite the anticipated completion of the I-440 renovation in August, it ain’t getting better any time soon, folks. It’s likely to get worse. But you already knew this, right? Best to take my approach. Relax and leave earlier. And when everything grinds to a halt ahead of you, breathe deeply and count your blessings. One of which is that we live in Nashville, a lively growing community with a lot of good things to offer. And that would include a good many excellent realtors.
In case you wondered, I’m an excellent realtor.