Am I the only one that thinks Nashville Prices are overinflated (sales, to rent)

[denawilliams]

It is true that the Nashville area has still continued to have increased property prices over recent years, even this past year as the credit crunch began and heightened. We have not suffered as much as other areas have, and while many parts of the country have leveled off or seen falling prices, we just haven't gotten there yet. It takes longer for us to sell our houses now, but people are still seeing appreciation.

Well, don't give up just yet and completely lower your expectations...you certainly need to find a home you like and can enjoy living in. You may need to give on a couple of things, but if there are certain things you're picky about, that's entirely okay. As long as you narrow your must haves to a manageable number and separate them from the wants list...you won't find the "perfect" house because it doesn't exist anywhere, but there are lots of us that can help you find one you really do like and are happy about. Don't forget, there are many things you can change easily (updated insides), but I understand about wanting certain things like a side load garage, etc. If I were you, if I found a home that fit my criteria in the least easily changed areas (garage load, overall shape of the house, size of lot, location, etc.) and if it were outdated, I'd use that as negotiating power to get the price of the house down! Some might not go for it, but there will be someone out there motivated enough. I do agree, that in this area, fewer people make updates to their home over time, which is surprising to me too, but use it to get a better price where you can! Good luck!

[Wild Style]

Originally Posted by dreading the move

I will be moving to Nashville soon, and am finding it very hard to comprehend the pricing in Nashville. Every home I have looked at is at least $50,000 overpriced, some of them $100,000. The reason I say this, is that the comps don't even support these prices.

All the new homes are on such small lots that it is laughable and it appears that there would be no resale value once the house wasn't "new".

It also seems that everyone has to commute at least 30 minutes if you want to live in anything bigger than 1500 square feet. I assumed coming to Nashville and spending $400,000 - $500,000 would get me a decent quality of life, but so far I have not seen it. This price range seems to only buy something way out in the boondocks.

Am I the only potential new resident feeling this way?

the closer you get to downtown the more the prices turn ridiculous.

[hml1976]

There's a lot for sale in Brentwood in that price range. Our house is 3200 square feet and in that range. It would be about a 25-30 minute commute to downtown though during rush hour.

[censusdata]

Bowling Green, Kentucky is a very nice midsized town (city: 51,000; county 101,000)about 40 minutes out of Downtown Nashville. It has every chain restaurant or store there is, including Sam's Club! Homes there would cost quite a bit less

[HouseWhisperer]

A quick search generated over 200 homes in Davidson County greater than 1500 sf and between 4 and 500K. They are of all shapes, configurations, lot sizes, etc. Nashville typically comes up on most "affordable" housing lists with a median house price much less than 200K. If you provided a few more details as to what exactly would make you happy in a home I am sure someone could help you find what you are looking for.

below is an article that ran in our local paper today that may help you understand our market. It really has not gone the way of some of the hardest hit markets and the outlook is still very good. There are some places that may be viewed as a bit more "risky" of a buy, more so if you do not plan to be here very long, but many other locations are strong year after year. Many neighborhoods here also are not "cookie cutter" where you can just like at price per square foot, you really have to come see the homes to understand how it all works.

link Middle Tennessee home prices hold up - Nashville, Tennessee - Thursday, 01/10/08 - Tennessean.com

[gbone]

Originally Posted by HouseWhisperer

A quick search generated over 200 homes in Davidson County greater than 1500 sf and between 4 and 500K. They are of all shapes, configurations, lot sizes, etc. Nashville typically comes up on most "affordable" housing lists with a median house price much less than 200K. If you provided a few more details as to what exactly would make you happy in a home I am sure someone could help you find what you are looking for.

below is an article that ran in our local paper today that may help you understand our market. It really has not gone the way of some of the hardest hit markets and the outlook is still very good. There are some places that may be viewed as a bit more "risky" of a buy, more so if you do not plan to be here very long, but many other locations are strong year after year. Many neighborhoods here also are not "cookie cutter" where you can just like at price per square foot, you really have to come see the homes to understand how it all works.

link Middle Tennessee home prices hold up - Nashville, Tennessee - Thursday, 01/10/08 - Tennessean.com

Although the article in today's Tennessean stated that prices were holding up, it is very misleading. The article stated that median home prices had risen slightly over last year. Although this is true, it doesn't tell the whole truth. The whole truth is that even though median prices rose slightly, housing prices are declining when you analyze the data. Basically what is happening is that the drop in number of transactions is greater in bottom half of the priced homes than in the upper half, which artificially increased the median price. Another way to put it is that the increase in the median price had little, if anything to do with house prices going up(because they haven't overall), but rather with the huge drop in transactions in the lower priced homes.

[TXRyan23]

A Real Estate agent in Brentwood told me last year that the reason the housing market has jumped in Middle Tennessee is due to the people of Florida and California selling their million dollar houses and moving here. They figure they can price gouge people from those states because they expect those prices, In the meantime, all it does is raise the prices of other houses..

If you want to find a great priced house not too far from Downtown Nashville, Look towards Hendersonville, Not alot of crime, a large police force and only about a 15 minute drive from Downtown.

[Mike in TN]

Just to continue discussion on the topic...

The homes that seem the most overinflated, at least in my area, are the 60s and 70s ~1400 sq. ft. ranches. They're on decent sized lots, but that's all they really have going for them; maybe they're in a more conveinant location? Anyways, they paint some interior walls, mow their lawns, put some new linoleium in the kitchen, and think they should get just as much, if not more, for their home than a newly constructed home.

But if people are willing to pay, then I guess it works. I know there are about four homes like those I described that have been on the market since the summer near my ghetto rental.

Originally Posted by FutureTexan

A Real Estate agent in Brentwood told me last year that the reason the housing market has jumped in Middle Tennessee is due to the people of Florida and California selling their million dollar houses and moving here. They figure they can price gouge people from those states because they expect those prices, In the meantime, all it does is raise the prices of other houses.

That's very well could be true!

Originally Posted by gbone

Although the article in today's Tennessean stated that prices were holding up, it is very misleading. The article stated that median home prices had risen slightly over last year. Although this is true, it doesn't tell the whole truth. The whole truth is that even though median prices rose slightly, housing prices are declining when you analyze the data. Basically what is happening is that the drop in number of transactions is greater in bottom half of the priced homes than in the upper half, which artificially increased the median price. Another way to put it is that the increase in the median price had little, if anything to do with house prices going up(because they haven't overall), but rather with the huge drop in transactions in the lower priced homes.

That makes sense to me, because the $145K homes my wife and I looked at in the spring are now $140. I'm hoping they go down even lower by summer when we anticipate buying.

[dreading the move]

It is refreshing to see gbone explain what is truyly happening. Any statistic can be stated a certain way for the desired outcome. You really have to dig around to get the whole picture. I am not bashing Nashville in any way, but I think the market is changing and people are still somewhat confused by that. I agree with Mike in Tn about certain areas seem worse than others. Green Hills, West Meade and Brentwood seem to be the most irrational in their pricing.

I think the issues are going to accelerate as the spring market begins and more and more homes come on the market. If sellers are wanting to sell, they are going find even more competition and fewer buyers in the marketplace. I don't believe there are enough buyers coming from California and Florida to keep up this pace. These two markets have been hit hard and most sellers have had to take price cuts I am sure they never thought would happen. They are going to be much more adverse to overpaying when they come to town, especially if they just took a big hit to make the move.

I am still holding out hope of finding something that I will not be upside down in next year.

I hope for t

[Taterhead]

[quote=I think the issues are going to accelerate as the spring market begins and more and more homes come on the market. If sellers are wanting to sell, they are going find even more competition and fewer buyers in the marketplace. I don't believe there are enough buyers coming from California and Florida to keep up this pace. These two markets have been hit hard and most sellers have had to take price cuts I am sure they never thought would happen. They are going to be much more adverse to overpaying when they come to town, especially if they just took a big hit to make the move.

I am still holding out hope of finding something that I will not be upside down in next year.
I hope for t[/QUOTE]




That's right, we really want to move to Tnn, but our market here in Phoenix is frozen, just like CA. FL. The house across the street from me just sold yesterday for 530.000, it started out 7 months ago at 719.000. I know the realtor, she said it was the only offer in 7 months. They had to pay all closing cost, plus give back 3 months worth of morgage just to get it sold. This home is turn key, granite counters,all new top of the line applainces,real hardwood walnut floors,slate around the fireplace, backs up to greenbelt, 3400 SF. They also throw in a new energy efficient washer/dryer. It is really bad here right now so we are waiting this thing out.

.