be realistic about the current housing environment
Chicago, IL (PRWEB) September 10, 2014
On September 7th Peoples Home Equity wrote a piece titled “Nashville Davidson County Shows Growth During 2nd Quarter.” The Wiliamson based lender, was intrigued by a subsequent release by The Tennessean on September 8th titled “Nashville market faces tight supply.”
Just as Peoples Home Equity released a publication on September 7th outlying Nashville’s impressive growth in Davidson County, The Tennessean published a release the next day highlighting price growth in terms of supply constraints which is becoming a noticeable problem for buyers. The Tennessean noted “there’s only 3.8-months supply of single-family homes and 2.9-months supply condos on the Nashville area market. That’s considered a seller’s market.” Real Estate inventories are so tight in the area that “new construction homes especially in the $300,000 price range go under contract the first day they hit the market.” The increase and decrease in home sales highlighted in the Peoples Home Equity report about Davidson County may be divided among new and used home regions. New home regions of Davidson may be seeing the increase in home sales while the declining sale regions may be due to expensive used home listings.
In an overemphasis on the lack of supply in Nashville, The Tennessean recorded Al Murphy, “a Nashville real estate investor with nine homes” saying “There’s pretty much no supply, so that’s why you see developers tearing down a house on one lot and building two single-family homes.”
Given such short housing supply in Nashville, Peoples Home Equity suggests to prospective mortgage applicants not to expect any price or inventory relief. The economy has improved since the housing bust of 2008, and unemployment has fallen to 6.2%. Many Americans are establishing or re-establishing their credit for a home purchase. This is especially true for young first-time home buyers who recognize the cost paying a mortgage is cheaper than paying rent, these individuals are very eager to purchase a property. With these factors in mind, Peoples Home Equity reminds those waiting for a desired property in Nashville to arise at the perfect price to be realistic and realize the current housing environment. The lender strongly encourages those waiting wait for a really good opportunity at least apply for a home loan. Once approved mortgage, buyers have much more knowledge and flexibility as how much of a home they can afford and how fast they can make a purchase.
Contact a Peoples Home Equity loan officer today at: 262-563-4026