Trying to buy a house in Nashville's red-hot market? (apartment complex, for rent)

[Nashgal]

The market is crazy. My friend has been looking in the Whitebridge neighborhood. She is finding it is one of the few neighborhoods that you can get a 3br house for under 300,000. Except for east Nashville. She was outbid on two houses. I think it is one of the hidden gems of west Nashville. Sylvan park is way too expensive.

[Tarzanman]

I live in Atlanta. Its Nashville's economy that is driving hot home sales. Atlanta's economy is still very much on the slow side, and while there is increased housing activity... it isn't hot like Nashville's market and still largely driven by investors.

Rents here went up an avg of 5% last year. That is a huge increase.

[yank283]

Originally Posted by Nashgal

The market is crazy. My friend has been looking in the Whitebridge neighborhood. She is finding it is one of the few neighborhoods that you can get a 3br house for under 300,000. Except for east Nashville. She was outbid on two houses. I think it is one of the hidden gems of west Nashville. Sylvan park is way too expensive.

I am assuming you are speaking about the "trendy" neighborhoods as there are PLENTY of houses under $300k in Davidson Co and surrounding areas.

[Nashgal]

Originally Posted by yank283

I am assuming you are speaking about the "trendy" neighborhoods as there are PLENTY of houses under $300k in Davidson Co and surrounding areas.

I guess if you consider west Nashville, green hills, and sylvan park trendy then yes. I think they want to be in that area. Too overpriced for me!

[newhere1]

As someone who just went under contract in Nashville (Williamson County), I found the prices quite high. BUT, it's all relative. I spent many years in Louisville, KY where $275,000 can get you a great house in a trendy neighborhood within 6 miles of the urban core. Some of the houses I viewed were in really bad shape but that was not reflected in the asking prices. There is some recent research on the impact of speculation in urban markets driving up prices and I think Nashville is a prime example. If memory serves, about 20% of home purchases are speculators/investors. The prices would not be so bad IF they came with good schools, but most folks cannot afford to spend $400,000 on a home and then finance private schools. Well, at least most of the folks I know.

[CountryGirl2b=]

There's "bad shape" and "bad taste" . . . a lot of the houses I looked at when I moved 3 years ago just were NOT my taste. LOTS of very dark red paint, heavy furniture, dramatic drapes, etc. Nothing structurally 'wrong' but really not my style!

But you're probably right about people looking for real estate as an investment. We're watching too much HGTV!

[jthon12]

Sounds like the bubble is inflating again, just like the Gov wants. When will this one pop is the question?

[MetropolitanTN]

Originally Posted by jthon12

Sounds like the bubble is inflating again, just like the Gov wants. When will this one pop is the question?

That's what I thought, too. I hope Nashville's economy can continue to grow to support the hot real estate market.

[nashvols]

What is needed to ease this is for construction to catch up with rising demand. It's not surprising that construction slowed during the recession. But now as things are heating up, construction is lagging behind the population gain, so the vacant supply we have is shrinking.

The metro area is growing by 27-30,000 people per year. That includes natural increase, too, but of that, there are always locals that are coming to the age or ability to buy homes.

If we say an average of 2.5 people per household, then every year we have to add around 12,000 units throughout the metro area. Not 12,000 in the pipeline, 12,000 completed by the end of each year. That is roughly equal to the number of housing units in the city of Brentwood. Every year.

Of course, these figures (units) include apartments and condos as well. A lot of the multifamily housing is being built around downtown...but there is still (obviously) a significant demand for single family housing in the suburbs.

I do see a good bit of new construction in my travels around the area, but not as significant as before the housing bubble. For folks in the area -- where are the active construction sites that you know of (outside of Nashville)?

[Beat02]

I live in Antioch, in a one bedroom apartment in a not so awesome area. If I re-lease my rent is increasing over 40 dollars per month. I'm angry. This apartment isn't worth nearly 700 a month. Damn you Nashville, and your costly housing...