What is going on in the Nashville Housing Market? Top Performer

[James Park]

I put together the MSA comparison for each major MSA markets for real estate and Nashville, TN was an interesting data point. The housing market in Nashville is 40% of above its last peak of Jan 2008.

For the local investors there, Just curious to what is going on over there? When all the other real estate markets were dropping 25-50% during the last mortgage crisis between 2006-2011, Nashville market just dropped 9.1%. Tech jobs? Population Growth, Low Taxes? Nashville's housing market looks to be 9.1% to the downside and 40% to the upside. In Atlanta, we dropped almost 40% in the last downturn and now 4.9% above the last peak in July 2007. What is going on in the housing market in Nashville?

[Luka Milicevic]

I must be in a different Nashville market than some people it looks like. 

While the market is still hot, it has cooled off rather significantly. Especially the new construction market.

Affordability is a major concern at the moment. There are more than enough higher end homes being built, but the stuff that's affordable to the average family is in very short supply and in extremely high demand. 

The affordable market has not slowed down one bit, in fact has gotten hotter. 

My concern with the market here is that the homes that are selling in the 350 up range are all leveraged by buyers to the absolute max. Whenever I have sold a home, the mortgage put on the property is almost the entire sales price. If there is a downturn of any kind in the economy and people start losing jobs I think there will be an extreme flood of foreclosures in new homes.  I guess that's the same as it has been forever.