JUNE 2022
Leanne here. Normally I like to kick off this newsletter with Titans and Preds updates because, let’s be honest, there is a v small percentage of people who like to open their email and read about real estate numbers (if you think the v is a typo please see below)… but we have found ourselves in those dreaded months where the NHL and NBA are over and the NFL is yet to start… Add increasing interest rates to the mix and it’s only fitting to start off our real estate newsletter with some real estate talk… I know, I know, I’m not excited about it either.
*v - short for “very”… Stay current, please
DAILY QUESTIONS FROM CLIENTS AND FRIENDS
Do you think the market is going to crash?
Well, no one knows the answer to that. What we do know is that there are still more buyers than there is inventory. Also, we can’t compare 2008 to 2022. In 2008, people were getting loans they weren’t qualified for and today it's much harder to get a loan. It’s a different dynamic out there than what we saw last time there was a correction. Standard market appreciation* is 2-3% per year and Nashville has seen upwards of 20-25% per year. This is where I think we will see the slowdown. Do we think Nashville drops to 2-3% appreciation per year? No, we don’t. But could it be 5% to 10%? Absolutely.
*standard market appreciation - a fancier way of saying how much your home increases in value
Should I wait to buy a home?
You don’t need to wait to buy a home but please be educated. Work with an agent who understands the market and the shifts in the market. Real estate is still one of the best investments you can make if you know what you’re doing. From 1990-2000 a 7% interest rate was considered low and yes, we might get back there soon.
Finally moving on to sports…