Word of the Day "Opportunity" - Middle Tennessee Real Estate Market Update 8-8-2022

Opportunity - Middle Tennessee Real Estate Markey Update 8-8-2022

Hi Friends, this is John Turner with The Turner Victory Team at Parks Real Estate. Today is August 8th, 2022. I think it's important to note that date because if you're watching this video in  the future some of the information may change. 

I am constantly asked how the real estate market is. People are curious about the market for numerous reasons but one of the main reasons why is because either they own property, or they want to purchase property, or they're looking to sell property. Or they're in a related industry. There are so many industries that are related to real estate, electricians, plumber, land developers, lumber, furniture sales… all sorts of industries are dependent upon what's going on in the housing industry. 

Today the word is opportunity, that's right, opportunity. Warren Buffett once said that whenever everybody is greedy you should be fearful, and when everybody is fearful you should be greedy. I'm not an advocate for being greedy but I think the point of what he is saying is when people are fearful there is opportunity. 

If you remember back in June the interest rates jumped above 6.5%. It scared a lot of people out of the market. There's a lot of opportunity in the real estate market right now in Middle Tennessee. 

Let me give you a couple of stats. Homes priced over 500,000 are approaching 2 months inventory. We have not seen that forever. Don’t get me wrong, it is still a seller’s market. Anything under 5 months inventory is considered a seller’s market, but it is quickly shifting to a more normalized market in the upper price ranges. 

However, in the lower price range we are still sitting around one month's worth of inventory, which is something that we've seen for a while. So that tells me there's an opportunity if you're looking to move up in home. If you have a house that would be priced below half a million dollars and you're looking to move up into something that's over half a million dollars, there's a good chance you're still going sale and get the price that you want but you're going to be able to do a little bit better on the purchase. 

Just a couple of months ago homes over $500,000 were selling for about 102% of what they were listed for. Now that number is about 99% of the list price. Maybe sellers are paying some closing cost. Maybe they're adjusting their price. There's opportunity there. 

Don't let the interest rates scare you. Obviously interest rates are up from their low of 2.75% or so. Right now they are hovering around 5%, give or take depending on what type of loan you go with. Historically, that is still a great rate. I have heard from many in the industry what rates may drop even lower. At that point,  look to refinance. Don't wait till the rates go lower to purchase. If rates drop everybody else will try to purchase as well and then you might be in more competition. 

So today let's think about the opportunity if you're willing to take it, and not just the opportunity to purchase a home for yourself but also an investment home.  There are opportunities out there. 

If you are thinking about entering the real estate market talk to me or one of our team members. Let's look at your options and look into opportunities that are out there. 

Thank you and I hope you have a wonderful day!