In terms of real estate fluctuation, Nashville has seen its share of ups and downs over the past few years. In an article published in the Nashville Business Journal, Nashville, unlike other areas of the country, did not see an increase in home prices this past February.
For the first time in three years, according to First American CoreLogic, the country saw an increase in national home prices. Is this a bad sign of things to come for the real estate market in Nashville? No.
Home prices fell 3.97 percent in the Nashville area during the month of February; however, that was an improvement from the 4.21 percent dip a month prior. A 1.26 percent gradual home price decline is projected for Nashville over the next 12 months.
Yet, according to McGraw-Hill Construction, contracts for new construction coming into Tennessee are increasing exponentially – for both residential and non-residential real estate. In just one year, residential construction contracts have jumped from $238.6 million to $386.4 million. This is a positive sign that new growth, more jobs, more money and more people are finding their way to the Nashville area.
What’s more? Now that the first time home buyer’s tax credit scramble has come to a close, the Department of Housing and Urban Development (HUD) is beginning to make gradual changes to the lending process in order to better protect homeowners. The consumer-protecting good faith estimate will now include new disclosures such as loan term, initial interest rate, payment penalties, initial escrow deposits and more. While an argument surrounding whether or not the changes will benefit or simply baffle home buyers is burgeoning, the fact that change is taking place to the home buyer’s benefit is positive.
While Nashville may not be the first city jumping feet first out of the recession, growth is on the horizon. New homes are being built, buyers can still take advantage of low interest rates and reduced home prices and governments and realtors are striving to implement changes that will bolster the lending and buying process in the future.