Thus far it’s gone something like this…
If you’re looking for a home to purchase right now in Nashville and surrounding areas, you’re not alone! According to the National Association of Realtors (NAR), inventory of available homes for sale is at the lowest point recorded since NAR began tracking this metric in 1982. However, more homes ARE expected to hit the local middle Tennessee market. Let’s look at the three key places they’ll likely come from as 2021 continues on.
1. Homeowners Who Didn’t Sell Last Year
In 2020, many Nashville sellers decided to pause their moving plans. Health concerns about the pandemic, financial crisis, just the raw fear and uncertainty of it all, oh my!
However, spring and warmer weather are rapidly approaching. Vaccine distribution is signaling a light at the end of the COVID-19 tunnel. Nashville is finally starting to open back up, which should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.com, notes:
“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”
Let’s face it: homeowners hesitated to sell in 2020. But as in-person showings, improving financial situations, and a measure of security return, many will enter the market later this year.
2. Builders are working overtime on new construction
Home builders got the memo and increased their housing starts dramatically in 2020. According to the National Association of Home Builders (NAHB), 2021 is expected to be even better:
“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”
The furious pace of new Nashville construction means homeowners looking for new houses that meet their changing needs will move into their dream homes. When these buyers sell their current houses, opportunity awaits in the resale market. This sets a simple chain reaction in motion for hopeful buyers.
3. Those Impacted Financially by the Economic Crisis
Some homeowners will need to move this year due to economic impact. Homeowners who didn’t take advantage of forbearance may decide to sell instead of going into the foreclosure process. And don’t forget the rapidly rising home values! These add to the selling wave, especially given the equity in homes today. Lawrence Yun, Chief Economist at NAR, explains:
“Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”
So don’t despair, it looks like we’re going to have an increase in the number of homes for sale in 2021. Receding pandemic fears, new construction, and more foreclosure listings will favor you if you’re thinking of buying. If you’re thinking of selling, doing so while demand for your house is high might create an outstanding move-up option for you.
High housing demand and low inventory says now is a great time to sell. Buyers are looking for a home just like yours, and options abound for you to find your next home. Let’s connect today to see how you can benefit from the opportunities available in our Nashville market!