Rural Middle Tennessee Experiences Predicted Increase in Home Prices
As the real estate market in rural Middle Tennessee braces for a significant increase in home prices over the next year, buyers and homeowners are preparing for a unique situation in the region. With home prices on the rise in Davidson County, buyers are increasingly looking towards outlining areas in search of better value for their money. This surge in demand for homes outside the city is now driving up prices in rural areas, presenting both challenges and opportunities for buyers and homeowners.
Experts in this field have explained that the increasing interest in moving to the country or smaller towns has led to a rise in demand, which is further exacerbated by low inventory. As a result, home prices are soaring. However, current homeowners in these areas have earned the benefits of the rising prices. It's a give and take situation, where those who have invested in rural properties can enjoy the rewards of their investment.
While Nashville remains an attractive location for luxury apartments, with supply exceeding demand, it’s rare that buyers look to settle down in Davidson County. The majority of buyers in the Nashville area, both locally and out-of-state, express a desire to move about an hour outside of Nashville. The appeal lies in the better value for their money that these rural areas offer, as living in the city itself has become prohibitively expensive.
The impact of this growing demand for rural homes on buyers is twofold. On the one hand, buyers seeking affordable options and better value can find potential in Middle Tennessee's countryside, like Cookeville, Tennessee. However, the low inventory in these areas poses a significant challenge. As the demand continues to surge, buyers must act swiftly to secure a home before prices rise even further. It's essential for potential buyers to assess their options, work with real estate professionals, and make informed decisions to navigate the competitive market successfully.
The ripple effect of this heightened demand for rural properties also extends to current homeowners. Zillow's home value index predicts significant price increases in Williamson, Smith, and Overton counties in the coming year, with College Grove in Williamson County expected to see an increase of over 10%. This news is encouraging for homeowners in rural areas, as it signals a rise in property value. However, buyers' struggles and the low inventory may limit homeowners' ability to sell and upgrade their homes within the region.
Anticipating the market trends, it's only natural that prices will continue to rise. So, how do we solve the issue of low inventory and high demand? We need to develop more homes, infrastructure, and amenities to meet the demand. Until that happens, the limited supply of homes will contribute to the steady growth of prices. While market experts expect to see price jumps in the coming year, they do not anticipate any drops in value. The overall value of homes in rural Middle Tennessee is predicted to continue growing.
The attractiveness of Tennessee as a state for homebuyers shows no signs of slowing down. Factors such as the favorable business climate, low taxes, and significant job opportunities from companies like Amazon and automotive plants drive continued interest in the state. As Tennessee remains a sought-after destination, rural Middle Tennessee presents an appealing option for buyers seeking affordability and value.
To shed light on this growing trend, GOBankingRates conducted a study to pinpoint which major U.S. cities are on track to lose their label of affordability. By projecting the overall U.S. median home value over the next 10 years using Zillow’s September 2022-23 one-year forecast, GOBankingRates compared this projection to the growth rates of 537 U.S. cities with home prices currently below the national median of $356,026. Knoxville, Crossville, Cookeville, and Clarksville are all on the list of major cities becoming unaffordable.
It’s important to remember that there are advantages to buying a home in a market with exponential growth. Buying a house in a city with rising home values can be a smart financial move. As home values increase, so does the equity in your home, which can provide a solid return on investment when it comes time to sell. Additionally, rising home values can indicate a healthy real estate market, which can attract new businesses and create job opportunities, leading to a thriving local economy. Furthermore, owning a home in a city with appreciating home values can provide a sense of stability and security, as you know your investment is likely to increase in value over time. Overall, buying a home in a city with rising home values can offer both financial and personal benefits.
The predicted increase in home prices for rural Middle Tennessee presents both challenges and opportunities for homeowners and buyers. While prices may be on the rise, the overall value of properties continues to grow, ensuring a promising market for the future. For those seeking a home in these areas, acting swiftly and making informed decisions are crucial in navigating the competitive market and securing a valuable investment.