Nashville's apartment construction boom is feeding the appetite of the thousands of people — many of them desirable and free-spending millennials — moving to Music City each year and not ready or willing to buy a house. But the delivery of shiny new buildings also is helping push up rents at a steady clip. Research firm Axiometrics says Nashville-area effective rents rose 5.9 percent in the 12 months to November, which is more than a percentage point higher than in September.
View the full Axiometrics release here.
The housing market researchers at Metrostudy think Nashville-area home prices could continue to rise all the way through 2015 because of a number of supply factors. Homebuyers looking in several areas, they say, are going to run into problems finding vacant developed lots.
Total VDL inventory for the region now stands at 11,400 which equates to a 22 month supply but areas such as Williamson County are down to a 14 month supply, which is considered a severe shortage (2 years’ worth of lot supply is considered about normal).
Home prices in the Nashville area ended October up 7.7 percent from a year earlier, according to research firm CoreLogic. That number was up from 6.9 percent the month before and broke a steady downward trend from the double digits we saw early this year. Taking out distressed sales, year-over-year prices increased by 6.2 percent in October, up from 5.3 percent in September.
SEE ALSO: Another recent trend-bucking positive housing market indicator, Freddie Mac's MiMi Index released last week.
The research team at housing finance giant Freddie Mac says Nashville's housing market showed renewed strength at the beginning of the fall and was among the top 10 in the country. (Check out the company's national release here.) Even though Middle Tennessee still officially ranks as relatively weak, it is outpacing the country when it comes to purchase applications, payment-to-income ratios and the number of borrowers current on their mortgages.
More good news for local homeowners and bankers: The latest foreclosure and delinquent loan data from research firm CoreLogic show that 0.54 percent of local homes were in foreclosure in September, which is up slightly from the August figure and right in line with the average of the past five months. But the share of loans late 90 days or more dipped to 2.96 percent of the total, the first time since before the recession that number has dropped below 3 percent.
By now, the trend is clear: Nashville-area housing prices are marching toward equilibrium and those expecting big gains from here on out are likely to be sorely disappointed. Research firm CoreLogic says September's local prices, including distressed sales, were up 6.9 percent from the mark of a year earlier. Take out those distressed sales and we were up 5.3 percent year over year. Those numbers are down from 7.3 percent and 6.0 percent, respectively, in August.
The Middle Tennessee housing market could be healthier, according to Freddie Mac's Multi-Indicator Market Index, but it's not regressing as steadily as it had earlier this summer. And there's the potential for a year-end strengthening: The agency's chief economist notes Nashville is among some mid-sized showing a rise in the number of home purchase applications.
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