YouTube Video – Housing Prices
Podcast Episode – Tennessee Housing Prices
Tennessee Housing Prices
You have no doubt noticed the real estate market has begun to change. We have more inventory of homes and the purchasing market has begun to slow down. It does have an effect on home values but not as many people think. Take a look at the numbers and make your informed thoughts on how the Tennessee housing prices will move.
Housing Listed Volume
As you notice from the graph below, the volume of new listings coming on the market has continued to grow over the last couple months.
Housing Price Increase Forecast
But many of the experts believe that we are still going to see a growth in home values. The average increase in home values is in the orange bar below of 8.5% growth in 2022. I think most people will take that growth over a one year period.
Dave Ramsey Sums It Up The Housing Prices
Personal finance expert Dave Ramsey sums it all up in his quote below.
Housing prices all boil down to supply and demand. When there is more demand than there is supply, the values rise. When there is more supply than there is demand prices go down. Although interest rates do effect the demand due to it being harder and more costly to buy a home, there are still people looking to buy and many of them coming into the market now. So lets first look at supply. Below is a graph of new homes being built by year.
As you can see, the number being built since 2008 (in grey) has been lower than the average number being built for the last 50 years. New housing is not being created at a pace that would keep up with normal demand. But this isn’t normal demand! Below is the chart of new buyers coming into the market.
Millennials made up 81% of all first time home buyers last year and 64% of all home buyers last year. Millennials are only a slightly smaller generation than the Baby Boomers and with all those new first time home buyers coming into the market, demand is continuing to stay strong. In fact, below are the predictions of the experts for the next few years.
Tennessee Housing Prices Prediction
It is still a great investment and way to build your wealth. Below is the long term look at buying a $390,000 home and the return on your investment over the next few years.
If you have any questions about the real estate market or you are thinking of buying or selling a home in the Chattanooga and North Georgia area, please feel free to reach out to us at the Nooga Team (423) 810-9474 and remember, with the Nooga Team, Your Home is Sold Guaranteed or We’ll Buy It!*
