Selling Your Nashville Home in 2022
While there was a lot of speculation predicting a market cool off in the first quarter of 2022, this red-hot real estate market is not cooling off just yet. While real estate professionals and financial analysts will project what they believe may happen, the market can be unpredictable, making deciding when to sell your home extremely stressful. Is 2022 the right time to sell your Nashville home? Are you ready to upgrade or move on? Do you want to cash out? How do you navigate moving into your next home? Let's answer some of the biggest questions about selling your property in 2022's red hot seller's market.
Why is the real estate market so hot right now?
In 2021 interest rates stayed at historic lows resulting in an increased demand for housing. However, the pandemic, supply chain issues, and developer cool-off lead to a slowing of new home construction and put further limitations on the supply of homes. This change in supply and demand caused considerable increases in home values. According to NPR, National median home prices increased 17% in 2021, and according to Zillow, Nashville saw a 22.4% increase in median home prices.
Why has housing increased so much?
Record-breaking low-interest rates have been a significant driving force behind national home prices trending up. The federal bank has promised to raise interest rates due to current inflation rates. While interest rates are still low, many buyers are trying to secure a mortgage before rates increase. A rise in interest rates often means an increase in rent prices, so many renters are also looking to move into homeownership before the market shifts. With Nashville rents having gone up 19% in 2021, many residents are looking to lock in a low rate while they can.
The pandemic also created a tremendous cultural and lifestyle shift for many Americans. After months of lockdowns and working from home, many homeowners decided it was time for a change. Many homeowners wanted a larger space, to move towards or away from a city, or even moved out of state for a new lifestyle. With the great resignation, a great migration has also contributed to the increased demand for housing.
The pandemic also created building materials' price instabilities and supply chain issues that slowed down new home construction. As the American culture shifted and many people started looking for a home, new construction has not kept pace with the demand, further driving up the value of existing homes.
Is now a good time to sell, or will the market get even hotter?
If you are considering a move and own a home, now would be an excellent time to sell and find your next home. While the buyers market is currently complicated, a good realtor will help you smoothly navigate the sale of your current home and purchase your new property in the most financially advantageous and convenient way. There is no guarantee what values will or will not do, and currently, values are high, and the circumstances make selling a home a faster, easier process.
Because inventory is so low and demand is so high, sellers can currently sell their homes quickly, with minimal effort and often zero contingencies. Sellers can expect a longer process, less competition, and contingencies as the market levels off. March 2022 inventory is down %12.52 from March 2021, and showings are down 8%. Homes are spending an average of 4 days less on the market compared to March of 2021. If you are considering selling your Nashville home in the next couple of years, now is the best time to do so, as there are no guarantees values won't dip, and it will likely be a more costly, laborious, and time-consuming effort to sell later.
Most experts predict that demand will have decreased by the latter part of 2022 as interest rates rise. While experts do not predict a market crash, they expect the rapid increases in property values to slow.
Will property values in Nashville drop? Is there a pending crash coming?
If you are considering a move and own a home, now would be an excellent time to sell and find your next home. While the buyers market is currently complicated, a good realtor will help you smoothly navigate the sale of your current home and purchase your new property in the most financially advantageous and convenient way. There is no guarantee what values will or will not do, and currently, values are high, and the circumstances make selling a home a faster, easier process.
Because inventory is so low and demand is so high, sellers can currently sell their homes quickly, with minimal effort and often zero contingencies. Sellers can expect a longer process, less competition, and contingencies as the market levels off. March 2022 inventory is down %12.52 from March 2021, and showings are down 8%. Homes are spending an average of 4 days less on the market compared to March of 2021. If you are considering selling your Nashville home in the next couple of years, now is the best time to do so, as there are no guarantees values won't dip, and it will likely be a more costly, laborious, and time-consuming effort to sell later.
Most experts predict that demand will have decreased by the latter part of 2022 as interest rates rise. While experts do not predict a market crash, they expect the rapid increases in property values to slow.
Who should sell their home now?
Anyone ready to move should look at selling their home now. Because there is so little supply and demand, houses are going very quickly, for over asking, and often with no contingencies and no need for a complex inspection process.
There is a lot of speculation that home prices will level off or drop once interest rates rise; this may be less of a factor in Nashville simply because of the low supply level and an ever-increasing demand created by new residents moving from out of state. However, interest rates are likely to slow the rapid appreciation seen over recent years.
What if I sell my Nashville home and cannot find a new one right away?
Anyone ready to move should look at selling their home now. Because there is so little supply and demand, houses are going very quickly, for over asking, and often with no contingencies and no need for a complex inspection process.
There is a lot of speculation that home prices will level off or drop once interest rates rise; this may be less of a factor in Nashville simply because of the low supply level and an ever-increasing demand created by new residents moving from out of state. However, interest rates are likely to slow the rapid appreciation seen over recent years.
Should I cash out and wait to buy my next home when the market crashes?
How Can A Realtor Help Me Navigate The Market?
Most experts predict a slowing down in appreciation rather than a market crash. Several increases in mortgage rates over the year are also predicted. Changes in interest rates can add a significant amount to the cost of your mortgage. It is recommended that homeowners secure a mortgage before interest rise. Having cash from your previous sale may enable you to secure a better interest rate.
A good, licensed realtor follows the market trends and predictions daily. They will understand what repairs, if any, need to be made and what offers are competitive. Realtors know how to list your home for maximum profitability and price your home to create interest and multiple offers. If you wish to buy a new home, a realtor can help you with strategies to secure your new home based on your timeline and needs making the transition as seamless as possible. While the current supply to demand ratio makes buying and selling slightly different, licensed realtors train and have strategies to help you navigate this exciting market.