Tennessee’s strong economy and low jobless rate may be a boon for homeowners, as property prices in the state rose 7.9% in the third quarter of 2017, according to an MTSU Business and Economic Research Center (BERC) report.
On the other hand, buyers may find it harder to choose from listings that fit their budget. Fortunately, interest rates for mortgages remain low. Mortgage Investors Group and other experts suggest consulting with a loan officer in Maryville or Nashville to find out which loan package works best for you.
Housing Market Trends
BERC Director Murat Arik said that the Nashville Metropolitan Statistical Area (MSA) registered the highest increase in residential property values, up 10.4%, followed by a 7.3% growth in the Memphis MSA. The MSAs in Jackson and Clarksville also recorded higher home prices than the previous quarter, according to Arik.
While home prices trend upward, building permits have also increased and these new projects may help in boosting supply. Therefore, prices could fall in the future. Building consents for multi-family properties rose 31% statewide between July and September, while single-family project approvals increased by 5%. Coming into 2018, these factors could more or less affect your decision to buy a house in the state.
Mortgage financing has been a common tool to help Americans finance their dream of homeownership, but some buyers forget to secure pre-approval from lenders. This is necessary since it lets you know whether you’re qualified to borrow a certain amount or not.
Preapproved borrowers also standout among several bidders, as it indicates your seriousness of buying a house. However, you should learn to back out and find other properties, if you find yourself in a bidding contest with prices exceeding your budget.
Tennessee’s residential property sector may continue to attract homebuyers next year, as the economy remains strong and more people have jobs.