Don't Bet Against the House
In the unpredictable world of investments, one thing has remained remarkably consistent: the value of housing. Over the past 81 years, the housing market has proven to be a reliable and profitable investment. Here’s why you can bet on housing with confidence:
A Proven Track Record (see #1) ➡️
- Consistent Growth: Since 1942, home values have increased in 73 out of the last 81 years. This means that for 90% of the time, homeowners have seen their investment grow.
- Minimal Decline: Home values have only declined in 7 years, showing resilience even during economic downturns.
- Steady Performance: Only once in 81 years did the housing market break even, highlighting its stability.
Housing Supply, Demand, and the Impact on Home Value Appreciation (see #2) ➡️
Housing Shortage: The number of new homes being built is not enough to meet the high demand from renters who are ready to buy. This shortage is why home prices keep rising and aren't expected to crash despite what some media reports say. These factors show a robust and growing real estate market in Nashville, making it a great time for potential buyers and realtors to get involved. Other areas might have even higher appreciation rates; the national average for 2022 and 2023 was nearly 6%.
Supply & Demand:
- Homes Being Built: Currently, builders are averaging 11,486 new homes in Davidson County.
- Renters Who Can Buy: 80,500 renters can afford to purchase a home, highlighting a significant demand in the market.
- Supply vs Demand Ratio: 7/1 (That is 1 House for every 7 Renters)
Historical Appreciation & Future Projections:
- People Relocating: The number of people relocating compounds this problem.
- Appreciation Over the Past 5 Years: Home values in Nashville's 37203 area have increased by an average of 7.07% each year.
- Past 10 Years: Over the last decade, the average annual increase in home values has been 5.78%.
- Projected Next 5 Years: Home values are expected to keep growing, with a forecasted increase of 4.23% per year, totaling about $174,555 in added value over five years. Based on the median price in 37203.
Thinking of waiting for mortgage rates to drop before buying a home? (see #3) ➡️
Here’s why that could be a costly mistake... Home prices continue to rise as you wait due to a persistent supply shortage. Even if you secure a lower interest rate later, the higher purchase price could mean your monthly payment is still the same—or even higher—than it would have been if you bought now at a lower price. Remember, while you can always refinance to a better rate, you can’t change the price you paid for your home. Don’t let today’s opportunity slip away. Home prices have increased substantially since 1942, even through economic downturns in the economy.
Why Waiting to Buy a Home Could Cost You Big: Barbara Corcoran’s Key Insights (see #4) ➡️
In this must-watch video, real estate mogul Barbara Corcoran shares her expert forecast on the housing market and why she believes now is the perfect time to buy. Corcoran warns that if interest rates drop, home prices are likely to soar, making your future purchase far more expensive.
She challenges the notion of waiting for lower rates, emphasizing that such a strategy could place you in competition with a crowded market, driving up prices even further.
If you have any questions or need more information, please don't hesitate to contact us. We're here to help you every step of the way!
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Michael Thayer
** Disclaimer **
The numbers and data presented here are subject to change daily or monthly. This information is provided for general discussion purposes only and does not constitute a formal quote or offer to extend credit. Don't hesitate to contact us directly for a personalized quote based on your financial situation.
