It’s baaaack!
After falling off the cliff in March with the twin body-blows of the tornado and covid-19, residential real estate in Nashville has come back to life. Big time.
Last month, I talked about possibilities, starting off with the question, what happens next? A month ago, it looked like normal activity would return at some point during this year, and I mentioned that some sources were predicting a gangbusters comeback in the fall.
Fall, it seems, has arrived early. Leading indicators tell the story. While actual closings are still depressed, the number of new listings and new bound contracts in Davidson and Williamson Counties this May are actually above the May numbers a year ago. Closings will follow suit next month.
What does this mean? If you’re thinking about jumping into the market – either as a buyer or a seller – but were hesitating because things seemed uncertain, I say this: what are you waiting for?
Money is still really cheap! As of yesterday, the 28th, Freddie Mac’s average rate for a thirty-year fixed mortgage stood at 3.15%. Average rate for a fifteen-year fixed was 2.62%. Those are remarkable numbers. Great news for buyers!
Inventory is still tight. Housing starts have not kept pace with demand for years. Everybody has to have a place to live and low interest rates bring swarms of buyers into the market. Great news for sellers of all stripes – both builders and sellers of existing properties.
Is there a fly in this ointment? Well, the future is impossible to predict with certainty. While there has been progress, we are not done with covid-19. Some fear that a too-rapid reopening will result in a second wave of infections, and a second wave could shatter the currently-building confidence. That’s possible, but I think it’s unlikely. See above: everybody has to have a place to live.
Time will tell, but my advice is to come on in. The water’s fine.
A word of gratitude. This has been a rough time for all of us – especially for those who are out of work and those who have faced sickness and death. One of my sons is out of work right now, and I have several close friends who have suffered through this terrible illness (clue: this is NOT just a flu), but no one I know personally has died from it. And I am grateful for continued health and for having useful work to do. I am also grateful for all of you who read my emails, especially those who send me such nice comments back. My hope for each of you is that you stay healthy until we are safely past this pandemic.