To say the economic atmosphere of 2009 was unfavorable would be an understatement. Thankfully, the New Year is ushering in brighter times. According to several real estate experts, national reports and the general air of optimism surrounding buyers and sellers, it appears the worst is finally behind us.
The real estate market in Nashville is expected to see a substantial rise in sales during 2010, mainly fueled by the government’s expansion of the first time home buyer’s tax credit, all-time low mortgage rates and the federal boost to the home loan lending industry. Developers have been forced to lower prices, luxury homes are leaving the market for less and the time has never been better for purchasing residential real estate in Nashville.
According to the Nashville Business Journal, office space leasing is set to increase and the commercial real estate market foresees improvement, as well. Unlike other areas of the nation, Nashville boasts industry diversity, which has staved off some of the worst economic downturns. Compared to other regions of the Southeast, ones that do not offer industry variation, Nashville is expected to see an increase in consumer spending and home sales sooner.
Although the number of home sales is set to increase in 2010, and according to the Nashville Business Journal, home prices are likely to rise somewhat as a result, nearly 10% of residents are still upside-down on their mortgages. There is a wealth of government-backed aid to help these individuals, and for those seeking a home, until a better balance is achieved, it is still a buyer’s market.
With hope at their heels, real estate companies, developers and sellers are now seeing the light at the end of the tunnel. When consumers take advantage of tax credit options, low refinancing rates, low mortgage rates and lending assistance in order to purchase real estate, it benefits both parties and pushes Nashville’s economy one step closer to recovery.