Clarksville, Murfreesboro rank high for affordability
Clarksville’s 37042 ZIP code once again topped one analyst’s rankings for “desirability,” based on housing affordability, tax rate, quality of life and other metrics.
Opendoor ranked Clarksville at No. 1 on its list, followed by cities on the outskirts of Oklahoma City, Houston, San Antonio and Dallas.
Murfreesboro’s 37128 ZIP code ranked No. 10, and Gallatin also made the top 20 for the first time.
“As the Nashville market continues to have strong job growth, its surrounding areas have become the most desirable in the country for home buyers,” said Chelsea Goyer, national head of brokerage at Opendoor. “For the second year, Clarksville is ranked No. 1 for its housing affordability, low taxes, high quality of life and close proximity to Nashville’s entertainment, dining and nightlife. Only 30 minutes from downtown, Murfreesboro is climbing in popularity with its affordability and plenty of activities for families. We anticipate more towns like Gallatin, which balances a small-town feel with all the convenience and amenities of a larger city, will continue to rise through the ranks.”
Nashville inventory sees big gain
The Nashville-area market saw a significant increase in housing inventory availability in December, according to an analysis by RE/MAX.
The local market saw its months’ supply of inventory jump from 0.6 months in December 2021 to 2.9 months in December 2022, the fourth-highest increase by percentage.
Nashville trailed Salt Lake City, Raleigh and Bozeman, Montana, in the rankings.
RE/MAX reported that home sales nationally for 2022 trailed the 2021 marks for all 12 months. Price increases also fell off nationally: After a 13.9 percent year-over-year increase in 2021, last year saw just a 1.3 percent increase.
“The past three years have each had a unique context — and 2022’s included quickly rising interest rates and the difficult year-over-year comparisons to the extremes of 2021. Ultimately, though, it was a fairly good year for home sales by historical standards,” said Nick Bailey, RE/MAX president and CEO. “Looking forward into 2023, the higher-interest rate environment clearly poses some challenges — but as buyers, sellers and agents recalibrate their expectations, sales will continue to occur. Demand hasn’t gone away.”
Multifamily deliveries to be concentrated in markets like Nashville
Yardi expects Nashville to be one of the markets in which new multifamily deliveries are concentrated.
Similar fast-growing cities like Dallas, Austin, Charlotte and Orlando will also see a concentrated chunk of deliveries, Yardi projected. Still, project starts are expected to decline due to construction costs, labor shortages and permitting delays.
Multifamily rent growth began to slow around the country, and Yardi expects rent growth to return to historical averages in 2023. In 2022, rents increased 6.4 percent after growing 16 percent in 2021.
Nashville mortgage payments tick down
The typical monthly mortgage payment in Nashville decreased slightly in December, according to Zillow.
According to the company’s analysis, the typical mortgage payment in Nashville was $2,254, a 68.4 percent increase over the same mark in 2021 but a 1.2 percent decrease from the figure of the prior month.
Nationally, monthly mortgage costs have fallen more than $100 from peak levels but are still almost double the figure from 2019.
It took about 30 days to sell a home in December, compared to six days in April 2022 and 43 days in 2019, Zillow found.
Further, 28 percent of homes nationwide sold above list price in November, the lowest mark since June 2020. The figure is still higher than the November 2019 rate of 21 percent.
“The housing market ended 2022 in a deep freeze, but there are some green shoots pushing up,” said Jeff Tucker, senior economist at Zillow. “The recent thaw in mortgage rates has begun to attract some renewed interest from buyers, and home sales are climbing again compared to last year. If rates continue to march down this spring and sellers return in seasonal force, the housing market just might get to have a normal — maybe even boring — year.”