Middle Tennessee home price increases continue to lead state

Middle Tennessee home price increases continue to lead state

Above, Business and Economic Research Center Director Murat Arik. //MTSU ILLUSTRATION


Tennessee’s third quarter housing market maintained its positive trends with increased permits, higher sales prices and historically low foreclosure rates, with the Nashville Metropolitan Statistical Area leading in most categories, according to the latest statewide quarterly report from the MTSU Business and Economic Research Center.

The Nashville MSA includes Davidson and 13 other Middle Tennessee counties, from Maury County north to the Kentucky state line, with principal cities being Nashville, Murfreesboro, Franklin and Hendersonville.

Year over year housing prices in the Nashville MSA rose 10.4 percent, according to the report, with the Chattanooga MSA the next highest, with a 7.7 percent increase, and the Memphis MSA third at 7.3 percent. Statewide the increase was 7.9 percent, and nationally home prices rose 6.3 percent.

Other areas worth noting are the Jackson (5.6) and Clarksville (3.3) MSAs, “both reporting much stronger growth than in the previous quarter,” BERC Director Murat Arik noted.

Arik said the state’s strong economy and low unemployment bolster the housing market.

Multi-family building permits for Tennessee rose 31 percent from the previous quarter and were up 65 percent over the third quarter of 2016. Single-family permits and total permits were up by 5 percent and 8 percent, respectively.

Other report highlights include:

• Foreclosure rates were the lowest in 17 years.

• For the first time in many years, inventories were up slightly in Knoxville, Memphis, and Nashville.

• The homeowner vacancy rate fell to 1 percent vacancy, the lowest rate in over a decade.

• The rental vacancy rate continued its steep decline, dropping to 6.9 percent, the lowest quarterly rate in two years. 

See the full current and previous reports with detailed breakdowns and summaries by going to http://mtsu.edu/berc/housing.php and clicking the appropriate links.

 BERC’s report is funded by Tennessee Housing Development Agency. The quarterly report offers an overview of the state’s economy as it relates to the housing market and includes data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies and foreclosures.

The Business and Economic Research Center operates under the Jennings A. Jones College of Business at MTSU.

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