Nashville ranked third in US for home price appreciation in 2017
Institutional investors are buying thousands of homes in Middle Tennessee and renting them, shaping the market for buyers, renters and sellers.
Last year was good for Nashville homeowners.
The metro area had the third-highest home price appreciation among the nation's largest markets, at 12.5 percent, and sellers saw the largest profits here since at least 2000.
Year-end data released by the real estate company ATTOM Data Solutions showed Nashville continued to bask in the glow of a humming economy and hot housing market.
“One of the reasons for this skyrocketing home price appreciation in Nashville is 'migration' from other high-cost markets," said Daren Blomquist, senior vice president at ATTOM. "People are moving because the jobs are moving, and they're better-paying jobs. They still see it as a bargain. Their context for what makes a good deal on a home is different, and they’re often willing to pay more than a local buyer.”
Homes sold for a median price of $224,900 in 2017, compared to $200,000 in 2016.
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“Folsom Prison Blues,” the 1955 Johnny Cash classic, isn’t exactly a deep cut — anyone with even a passing familiarity with country music has heard it. So when the Don Kelley Band tore into the opening riff at the beginning of their set at Robert’s Western World — one of many honky-tonks on a brightly lit neon strip of Broadway in downtown Nashville — I nodded my head and tapped my feet along with the other hundred or so people in the joint. It was the musical equivalent of comfort food — nothing too surprising or challenging. I wasn’t quite ready for what happened next.
Luke McQueary, a skinny 17-year-old in a plaid Western-style shirt, stepped to the front of the stage and, instead of delivering the workmanlike guitar break I was expecting, set the stage aflame with a blistering solo I would have expected from someone twice his age and experience. It was no fluke — the virtuosity continued during the following song, performed with an earnest, almostHendrix-like showmanship. I half expected someone to come out from the wings, wrap a robe around him, and help him off the stage, à la James Brown.
I was surprised, but I shouldn’t have been. A place nicknamed “Music City” has a reputation to uphold, and Nashville was more than ready to exceed my expectations. A mecca for talented musicians, Tennessee not only has more high-quality live music than you could ever hope to enjoy, but top-notch dining — both traditional Southern cooking and contemporary twists on old standards. It’s a great location for those on a budget, too — I scarcely noticed the damage to my wallet after a four-night trip there in November.
That area of Broadway is a little like the Las Vegas Strip or Bourbon Street: crowded and touristy, but fun in small doses. I visited there with my friend Halena Kays, with whom I crashed in nearby Murfreesboro, a suburb southeast of the city. We ended up at Robert’s Western World accidentally, as our plans to have dinner at nearby Merchants Restaurant, on the corner of Broadway and Fourth Avenue South, had hit a snag — the place was booked solid. No matter: We grabbed a $4 fried bologna sandwich (imagine a BLT — now imagine it twice as salty) and a couple of $4.25 Miller Lites at the honky-tonk while we listened to the aforementioned band.
I soon received a text that a table had opened up and we walked over to Merchant’s. The place effectively operates as two restaurants, a pricier steak and seafood restaurant on the second floor, and a less expensive, modern southern bistro on the ground floor. We opted for the latter and grabbed a booth in the bright, spacious dining room. The fried green tomatoes ($11) were spot-on, and the Nashville Caesar salad with cornbread croutons ($12), and a pulled pork sandwich ($13) were satisfying. One nice thing: When they saw we were sharing everything, they were happy to split the dishes into separate portions.
That strip of Broadway is just a stone’s throw from Ryman Auditorium, an indelible piece of Nashville history that belongs on every to-do list, especially if the Grand Ole Opry happens to be in residence. The Opry, an artistic home to country musicians since it began in 1925, takes place primarily at Opryland, about 25 minutes northeast of downtown. But if you can, see the show at the Ryman, home to the show from 1943-1974, which sometimes still hosts the Opry. The building itself is a relic — opened in 1892 as the Union Gospel Tabernacle, it earned the moniker “Mother Church of Country Music.” Near the back steps of its hallowed halls, Halena and I passed a young street performer with an amazing voice crooning a song I didn’t recognize. In Nashville, even the buskers have exceptional talent.
Keep reading at: https://www.nytimes.com/2018/01/24/travel/affordable-nashville-trip-budget.html
Nashville's short-term rental vote: What it does, what it doesn't do, and why it's a big deal
Short-term rentals, like Airbnb, HomeAway and VRBO (a branch of HomeAway), have caused controversy in Nashville. Some believe they benefit the city. Others feel like they are hurting neighborhoods. Ayrika Whitney/USA TODAY NETWORK - Tennessee
The newly approved ordinance falls far short of banning all short-term rentals in the city. It's instead aimed at phasing out one particular type — investor-owned short-term rentals in residential-zoned neighborhoods.
Critics have complained this type, known as non-owner occupied short-term rentals, have turned residential homes into disruptive party hotels and uprooted longtime residents in place of businesses that don't belong next to homes.
Continue reading at: https://www.tennessean.com/story/news/2018/01/23/ashville-council-approves-airbnb-phase-out-bill-residential-neighborhoods/1057718001/
* 3BR, 2BA with 1414 sq ft for $259,977
* 1919 Dahlia Circle, Nashville, TN 37210
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* In the last 5 years, NEW: roof, HVAC, water heater, siding, stainless appliances, windows, paint, floors, deck, gutters, hardware, and fence
* Just in the 12 months, NEW: master bathroom, lighting everywhere, quartz kitchen counters, and lower level carpet
* Refinished sand and finish hardwoods throughout main level
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MLS Announces Nashville Event Where it's Expected to Accept Expansion Bid
By BRIAN STRAUS
December 19, 2017
Major League Soccer is coming to the music city.
The league all but confirmed Tuesday morning that the Nashville bid fronted by local billionaire John Ingram and supported by the Wilf brothers, who own the Minnesota Vikings, has been accepted. MLS commissioner Don Garber will join Ingram, Tennessee governor Bill Haslam and Nashville mayor Megan Barry at an event Wednesday afternoon at the Country Music Hall of Fame, where they’ll announce the city’s entry.
You can watch the event in the stream below:
Ingram and the city plan to build a 27,500-seat, $250 million stadium at the Fairgrounds Nashville site just south of downtown. Their bid was considered a long shot when it was unveiled in January.
“I think it’s fair to say we’re an underdog,” Ingram told SI.com at the time.
But Nashville’s cultural appeal, Ingram’s wealth, the public-private stadium partnership (which includes 10 acres for mixed-use development adjacent to the arena) and stumbles by early expansion favorites combined to leave Ingram as the clear front-runner as MLS owners met last week. The league intended to name two teams this month, but Nashville is the only confirmed expansion entrant. That’s an indication of the strength of its bid, as well as a few remaining questions surrounding the other three finalists—Cincinnati, Detroit and Sacramento.
As the league continues to evaluate those three, it’s possible a decision and/or announcement could be delayed until after the holidays.
As of Tuesday, it was unclear when Nashville’s MLS club will begin play. The league originally scheduled the two teams named this month to kick off in 2020. They’d be clubs No. 25 and 26, joining after David Beckham’s Miami outfit and Los Angeles FC entered as members 23 and 24. But only the latter is ready. Coach Bob Bradley’s LAFC will kick off in March and then open Banc of California Stadium on April 29 against Seattle. The Miami project has taken far longer than anticipated. While this month’s recruitment of investors Jorge and Jose Mas has solidified the ownership group, a stadium construction timeline and MLS entry date are impossible to peg.
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Tax plan could really hurt Nashville real estate market
“Realtors: Senate-passed Tax Legislation Bad News for Homeowners,” reads a recent headline from the National Association of Realtors. Lest this spawn a political debate, it should be noted that NAR’s membership is 1.3 million strong and that its PAC raises and disburses millions and million of dollars each year, and that those dollars are usually almost evenly split between the two major parties.
Based on what we have seen, the big money must be on the other side of this issue.
NAR cares not about Republicans and Democrats. Its focus is homeownership and Realtors. Its resources are infinite, and its research thorough.
And the association says the bill “puts homeowners at risk.” Senator Bob Corker, as anyone who follows these things knows, voted against the bill. For those who are missing a program, Corker is a Republican.
NAR president Elizabeth Mendenhall, a sixth generation Realtor from Columbia, Missouri, offered strong concerns over the bill and said the Realtors will continue work with members of the House and Senate as the process moves forward into a conference committee. She says there is hope in Senate/House reconciliation.
Her statement is alarming: “The tax incentives to own a home are baked into overall value of homes in every state and territory across the country. When those incentives are nullified in the way this bill provides, our estimates show that home values stand to fall by an average of more than 10 percent, and even higher in high-cost areas.” By the way, Nashville would be considered a “high-cost area.”
Mendenhall says the NAR supports tax cuts “when done in a fiscally responsible way.”
This bill, however, could cause many homeowners “to see a tax increase,” Mendenhall says, adding “In exchange for that, they’ll also see much, or all of their home equity evaporate as the $1.5 trillion is added to the national debt and piled upon the backs of our children and grandchildren.”
There are 75 million homeowners out there.
Many have wondered what could cause the city’s growth to slow. Perhaps this is it.
Thirty-one years ago, when the Tax Reform Act of 1986 passed, there was celebration in Washington among those who passed the legislation. While I write about it in negative terms, there are those who feel it was helpful.
But, they were not in attendance in Resolution Trust Corporation auctions the banquet halls of local hotels. There were condos listed on large Post-it notes easels with prices beginning at $25,000 for 1,200-square-foot condos across the area.
One of the attendees bought a condominium on a credit card, never dreaming that he would buy anything at the auction. Pay down those balances and raise the credit limits, there may be some bargains to be had.
Sale of the Week
One of Nashville’s top Realtors is Village’s Virginia Degerberg, whose sales prowess is understandable considering she cut her teeth selling air time at local radio stations. After selling the verbal ramblings of air personalities from Gerry House to Carl P. Mayfield, she broke into real estate and sold more than any other new agent in the Greater Nashville area that year.
She has continued to prosper and recently sold a house in West Meade – some people call it West Meade, Degerberg calls it Harding Park – and garnered some $1,726,000 for its 6,652 square feet. With five bedrooms, five full baths and a couple of half bathrooms, it has three garage bays and rests upon .62 acres.
Degerberg described the house as “light-filled with amazing outdoor space” and noted the outdoor gas grill had been “totally redone.” Also included in the sale were new kitchen appliances and a media room with a “movie screen and a new projector.”
Located at 120 Laird Road, the $1.7 million price tag is robust. Houses with spectacular kitchens, some sizzle in the bedroom and outdoor areas will command that number.
Barbara Keith Payne of the Pilkerton Company represented the buyer and beat the others to the punch with the house going under contract three days after Degerberg listed it for $1.75 million.
With a new roof, gutters, water heaters and HVACs, the home is virtually new.
A speaker once said that when a person precedes a claim with the word virtually, what follows in generally not true. Of note is that at one time this was the home of Daisy King of Miss Daisy fame. While Daisy King is driven, she is not famous for that. Rather she is a relentless chef, cookbook author, caterer, and philanthropist, one of the area’s true characters.
Richard Courtney is a real estate broker with Christianson, Patterson, Courtney, and Association and can be reached at email@example.com.
By Eric Snyder – Managing Editor, Nashville Business Journal
Don’t expect the Nashville area’s housing market to cool off much in 2018 — the National Association of Realtors' 2018 National Housing Forecast expects the area to be among the country’s top 10 housing markets next year.
Based on expected gains in prices and number of sales, the Nashville MSA ranks No. 9 in the association’s forecast, which is topped by Las Vegas.
Through the first 10 months of 2017, there have been 34,059 closings in the Nashville area, an increase of 4.2 percent compared to 2016, according to the Greater Nashville Realtors.
Realtor.com’s full housing forecast is available here.
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