The early days of the COVID-19 pandemic saw a decline in most businesses. People stayed home for their own safety and for the well-being of others. However, people did still have to move, for new jobs or to be closer to family, and the real estate market continued to see homes being bought and sold. Today, the Nashville real estate boom continues in spite of the coronavirus outbreak.
In Nashville, as well as throughout the country, we are in what is known as a seller’s market. Even before the pandemic started, there were more people looking for a home to buy than there were available homes on the market. Real estate agents refer to this situation as low inventory.
A seller’s market means that sellers have the upper hand. One Nashville realtor recently noted, “In shopping around with clients, I’ll get out there, we’ll find something that we’re interested in and if we’re not able to get an offer in on it within a day or less, it typically is gone.” The Greater Nashville Realtors reported that, during one week in late July, an average of 54 homes sold per day.
Home Prices Increasing
As the Nashville real estate boom continues in spite of the coronavirus outbreak, home prices are also increasing. Market data compiled by Greater Nashville Realtors shows that the median price of a home in August 2020 was $346,172. In August 2019, the median price was $315,862. The August 2020 median price was also an increase over each of the summer months of 2020, during the height of the COVID-19 pandemic. In July 2020, the median price was $344,420, and in June 2020, $331,448.
Rebound in Mid-Summer
Although median home values dropped drastically in late spring, in the midst of the coronavirus outbreak and the associated stay at home orders and business shutdowns, home values in the nine-county, Nashville metro area began rebounding in July.
The rebound in sales and home values can be attributed to the desirability of the Greater Nashville area, as well as “low-interest rates and consumers relocating to Nashville as remote working options are more available,” according to Great Nashville Realtors Association President Kristy Hairston.
Virtual Home Buying
Real estate agents, buyers, and sellers are all adjusting to the new normal of home buying and selling. Showings are being held virtually, via video chat platforms. Even some of the normal paperwork processing activities, such as appraisals and closings, are being performed remotely.
When a showing is done in person, there are new rules about the home being unoccupied and showings available only by appointment. Many agents are also requiring that buyers come to a showing with a pre-approval letter, to ensure they are serious about purchasing their home and are not just casual shoppers.
Housing Market Still Climbing
According to data compiled by the online real estate platform Zillow, the market is growing nationally and homes are selling faster than last year. Their data shows a 5.4% increase over last year in the median list price for a home selling in Nashville, reaching an average of $379,820. In addition, listings in Nashville during one week in mid-August 2020 grew by 2% compared to the previous week.
Buyers and Sellers in a Seller’s Market
For sellers, the Nashville real estate boom in a seller’s market means this is a good time to put a house on the market. The home will probably sell fairly quickly and may even sell for a higher price than it might have this time last year. Buyers may be more willing to offer full asking price, or more, and even provide cash offers, which eliminates the time spent in the loan process.
For buyers, the competition to purchase a home could be more challenging in a seller’s market. Others will be making offers on the same home, which can create a bidding war. Buyers should be prepared with pre-approvals from lending agencies and a quick decision to purchase when they find a home that fits their needs.
Fox Moving and Storage Nashville is Ready to Help with Your Next Move
Whether you’re buying or selling, the professionals at Fox Moving and Storage Nashville can help with your next move. During the coronavirus pandemic, we take every precaution necessary to maintain your safety and well-being throughout the process. Contact us for more information about your next move, whether it’s within the Nashville area or across the country. Call Fox Moving & Storage Nashville at 615-965-5640 to learn more about our services and to get a free quote.