The entire country and world have been badly hit by the Covid-19 pandemic, especially in the economic and financial sectors. Millions of people and businesses lost their jobs and are forced to close and halt their operations. This has become an economic trend around the world. Not just the lives of those who succumb to the virus but also the employment and businesses of millions of people around the world as well. The real estate market is of no exception to this pandemic’s terrible effect. In this article, we’ll explore the effects of COVID-19 on Nashville’s real estate on the housing market and how the city is coping up during this downtime.
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In an article published by Eric Snyder in Nashville Business Journals, it mentioned about Nashville home sales hit hard by COVID-19, slowing the economy, raising uncertainty about what’s still to come. Check out the article below to find out more.
Nashville home sales hit hard by Covid-19
Nashville-area home sales fell by 17% in April, as Covid-19 slowed the economy and raised uncertainty about what’s still to come.
According to new data from the Greater Nashville Realtors, 2,887 closings were reported last month, down from 3,479 closings in April 2019.
“What’s important to keep in mind is the reduction in total sales, the Greater Nashville area is doing much better than other markets which have seen sales plummet during this time,” Greater Nashville Realtors President Kristy Hairston said in a news release. “Locally, consumers are still buying and selling homes, which is evident in 3,050 pending closings for May, which is promising.”
That said, there were 20% more sales pending at this time a year ago, which suggests sales may again be down substantially in May, though it remains to be seen how much that could be offset as counties loosen their restrictions imposed to combat Covid-19.
“We will continue to monitor pending sales as they dictate how many active buyers and sellers are engaging in the market despite job uncertainty in local businesses and out-of-state relocations due to traveling restrictions in some areas,” Hairston said.
Single-family homes sold for a median price of $330,000 in April, up from $306,970 a year ago. Condo units sold for a median price of $228,500, down slightly from $229,990.
Hairston concluded: “While we have seen market factors temporarily decrease because of the effects of storms and Covid-19, what is promising is days on the market are decreasing while home sale prices are increasing in many areas. For the first time in a few weeks, we have seen an uptick in showings of homes within various areas and price ranges. Based on these factors, when we move towards a new normal, all indicators point to a market rebound later this year.” Read more about this article here…
This data is expected by some real estate experts in Nashville for a lot of home buyers opted not to go out due to fears of getting infected with the virus. Home sales dropped 17% in April alone.
However, this drop has minimal effect on the city’s housing market as overall, the Greater Nashville area is doing a great job than the other markets. With people slowly adjusting to the “new normal” these numbers are expected to increase as home buyers, sellers and investors resume their activities fueling the real estate market.
This finding about Nashville’s real estate market falling significant numbers was also confirmed in an article published by Erica Francis in WKRN.com which also mentions the possible trouble COVID-19 could cause to the city’s commercial real estate market.
COVID-19 could cause trouble for Nashville’s commercial real estate market
NASHVILLE, Tenn. (WKRN) — As the work from home experiment wages on, some say, it’s here to stay. It comes after social media giant, Twitter announced employees can work from home indefinitely if they so choose.
If and when other companies follow suit, this could mean trouble for Tennessee’s commercial real estate industry.
”I think what we’ll see is a lot of employers who were hesitant to go with work from home, they’ll say ‘hey this isn’t so bad,’ so I don’t invasion anyone getting rid of their offices but I can see the potential of them reducing the size of their offices,” said Ryan Turbeville, Director of Commercial Real Estate at the Ashton Real Estate Group.
There is some speculation within the development community that this will result in less office demand since more people may be able to successfully work from home, according to Ben Rooke, Regional Vice President of Brasfield & Gorrie, LLC.
Rooke said office buildings, multi-family, and hospitality projects that were being planned before the pandemic is almost all paused and that there is a “wait and see” attitude for what happens with demand and financing.
”All of that buzz out in the market has kind of stopped, ceased all together right now,” said Rooke, “It’s hard to see through the fog.”
Rooke said most projects that are in progress have continued, with slight adjustments due to social distancing and health screening. Full article was published here…
With companies now transitioning to a work-from-home set up to some of their employees, it could have some negative effect on the commercial real estate market not just in Nashville, but in the entire state of Tennessee. This set-up badly affects commercial real estate properties such as office spaces for it means fewer demands of these spaces. Also, projects related to office spaces that have not yet started are now put on hold, while those that are in progress have continued with slight adjustments to deadlines.
In a recent article published by AJ Abell at Fox 17 Nashville, Nashville housing market in general, remains very hot despite pandemic hitting economies and housing markets worldwide. Read the article below to find out more.
Nashville housing market still hot despite coronavirus hit
The housing market has slowed down because of the pandemic, that’s been very clear.
The National Association of Realtors says, nationally, home sales have dropped about 18 percent in April. But in Middle Tennessee it’s a bit of a different story.
Local Realtor Craig Edwards says they don’t have enough houses to sell, meaning the demand is much greater than the supply.
“If it goes on the market, it goes away,” he says. “In Williamson County the average time on the market is 38 days. And that also includes some very high-priced homes that typically stay on the market much, much longer.”
Edwards says homes in the $250,000 – $350,000 range will stay on the market for only about a week.
In April, there were 377 closings in Williamson County, which is about 100 fewer than this time last year. But in Davidson County, he says there were still 929 closings just in that one month.
“The inventory is so low, but Nashville is still growing through all of this which really has kept that market afloat.”
Edwards says most tours have been virtual, which poses plenty of new challenges, but people are still taking advantage of the record low interest rates during this pandemic. Plus, he says homes are still appreciating by about 3 to 4 percent.
Nationally, some are re-thinking their lives in big cities like New York and are moving out, but Edwards says some of those people are moving to Nashville and creating some of the demand in the city.
Edwards does, however, believe some Nashvillians will move out to the suburbs because of this outbreak. Read full article here
With the Nashville housing market remains to be resilient despite COVID-19, this can be seen as a welcoming sign in the coming months. With people starting to live their normal lives, buyers, sellers, and investors will start to pick up what they have left off. This pandemic has also created a demand for homes in the city as people living in big cities are moving to Nashville.
Despite current inventory remains on the low, Nashville’s housing market is still growing, which kept the market afloat. A lot of real estate experts see this as an opportunity for home selling, especially these times of pandemic and a lot of people lost their employment.
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