Why Buying a Home in Nashville is Too Expensive

Posted on Mar 9 2018 - 6:50am by Business Day TV

Couple holding the keys to their new homeAre you planning to buy a home in Nashville? You may want to consider other places in Tennessee as prices in this city rose 12.5% in the previous year.

ATOMM Data Solutions said that the median home prices in Nashville amounted to almost $225,000 in 2017, up from $200,000 in 2016. This means good news for sellers, yet spells trouble for prospective home owners.

Price Appreciation

The increase in Nashville’s home prices represented the third highest growth in property values nationwide. Kansas City and Silicon Valley were the only two cities that recorded bigger growth at 13.4% and 13.3%, respectively.

If you already found a house outside Nashville yet still need a property loan, a mortgage loan officer in Morristown or Memphis may help you with financing for a home purchase. ATTOM vice-president Daren Blomquist advised buyers to think carefully if they can afford a home purchase, instead of just buying out of fear that prices could further increase in the future.

Growth Reason

Blomquist attributed the more expensive property prices in Nashville to more people moving into the state from places where prices are even higher. Some of them are willing to pay more than the asking price, due to jobs with bigger salaries in the city.

For instance, home sellers in Nashville enjoyed a 51% average return on investment or a $76,600 profit. If you plan to sell your house this year, seek advice first from a real estate agent to know your chances of having the same yield. Industry experts, however, believe that the price appreciation will likely become slower this year.

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A housing loan serves as one of the best option to buy residential property, so it pays to do your research about interest rates and how you plan to pay for it. Would you still buy a house in Nashville?