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Recent national
economic
developments in
the housing
market have
indeed reduced
the new and
existing home
sales to record
lows in
Tennessee. In
the rural areas
of Tennessee,
home prices for
the most part,
have been
holding steady
with a slight
decline in
sales. However,
the most
significant drop
in new and
existing home
prices and sales
are in the urban
areas of
Tennessee.
With the
devaluation of
our dollar and
high energy
costs, I see a
two year
stagnation in
the real estate
market for
Tennessee. New
home builders
have a high
inventory of
unsold units
which causes a
significant drop
in home values.
This makes a
buyers market
with many
bargains to
choose from.
The existing
home sales
market is also
affected by the
high supply and
low demand of
new homes in
inventory. The
average
homeowner would
like top dollar
for their
property,
however in
today's market
this is most
difficult. The
high inventory
of new homes,
makes a
difficult
situation for
the homeowner
that wishes to
sell their
property.
In Tennessee, as
well as most
other states,
the home and
apartment rental
market is on the
upswing, with
many new
developments
being under
construction
throughout the
state.
In conclusion:
The future
outlook for the
Tennessee real
estate market is
not as bleak as
other states,
due to many
valuable assets
that attract
home buyers from
the northern
states as a
retirement
destination.
Tennessee will
indeed fair
better in the
housing market
than some of the
high growth
sections of the
country, such as
California or
Florida. In some
states, the home
market may take
years to
rebound.
John Tatman ASA,
IFAS, CRA
Retired
Real
Estate
Appraiser,
with 25
years experience
in
the
Real
Estate industry.
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