2018 Projections For Germantown Nashville Real Estate
In the past, Nashville was known for having high crime rates, which scared investors away. Over the past few years however, the region has recorded significant changes as far as its real estate industry is concerned. Such changes include a rise in the value of homes, as well as an increase in the number of new homes around the region. The reduction in crime rate and the shift in home value have led to the development of diverse types of property and growth of better neighborhoods around Nashville. Germantown is one of the regions in Nashville that has experienced such changes in the real estate profile over the past years. This article provides an overview of some of the 2018 projections for Germantown Nashville real estate.
Growth in the number of residents with family
Germantown Nashville is located in Tennessee and comprises of eight neighborhoods. With its population of about 39,000 people, the city qualifies to be considered as a medium city. The region has some of the most expensive homes in Tennessee. Such high prices of homes are consistent with the case of real estate in America presently, with Germantown’s homes ranking among the highly valued homes in the whole of America. The city is considerably a white-collar region having the majority of residents here (92.19%) in white-collar employments. The region is family-friendly and hence, attracts most people with families to live here due to a number of factors. Good school district, low crime rate and the availability of single-family homes are among the factors that are likely to attract many people, especially couples with children, to look for homes and settle in Germantown.
Increase in the number of new homes in Germantown Nashville
It is an undeniable fact that the real estate industry in Germanton has grown over the past few years. The city has about 14,476 apartments or houses. In addition, it has been termed as one of the neighborhoods in Nashville that has highly priced homes. For example, the cost for a home in Germantown is about $334,322. The majority of the homes here are single-family but large with a high percentage of these homes comprising of four, five, or even more bedrooms. There are other types of homes such as the owner-occupied homes, which consist of four and three bed-roomed apartments. Most houses here were built between the 1970s and 1990s, although there is a considerable shift towards modern housing in the city as evident in the majority of houses that were constructed after 2000. Generally, Germantown has diversity in the types of homes due to the difference in the times they were built. However, considering the growing demand for homes in the area, chances are high that new homes will come up to cater for these needs. This can be traced from the increasing value and prices of homes in Germantown and its neighborhoods.
Higher rate of appreciation in value of homes in Germantown
The growth experienced in the real estate industry in Germantown has led to the appreciation in the prices and value of homes in the region. Over the last ten years, the homes in this area have been considered to be above average in terms of prices. Rated within the ten years, the cumulative rate of appreciation in the value of homes in Germantown Nashville was 10.56%, which has placed the region at the top in terms of the national rank. Computed annually, such appreciation translates to about 1.01%.
Even though the nation has been experiencing a decrease in the real estate market, the case has been different in Germantown Nashville. The appreciation rates have remained strong with a promising increase in 2018, and the years to come. In comparison to most other communities around, the value of homes in Germantown shows a positive trend in term of appreciation. According to the statistics over the last one year, the appreciation rate of homes in the city has hit 7.5%, making Germantown Nashville rank higher than 80.8% of the towns and cities around. Such a condition has seen the majority of short-term real estate investors make the most out of Germantown’s real estate. This can be attributed to the considerable increase in the appreciation rate per year from 1.01% in the last year to 2.01% in the latest quarter. Such an increase is a sign that the appreciation rate of the value for homes in Germantown will be high in 2018 and the succeeding years.
A rise in the median value and price of homes
The current median value of a home in Germantown Nashville stands at US$ 297,500. Past trends indicate that the area has experienced a significant rise in home values by 1.3% as compared to the past year. In spite of this high value, the projections by Zillow indicate that in 2018, the value will go high to reach a peak of 1.6% and even much higher in the future years. The price increase in Germantown can be attributed to the growing demand for homes in the area. Presently, the median list price of homes in the area stands at US$299,945, with the list price for every square foot being US$207. It is projected that the medium price per square foot for listed homes will increase significantly with the projected increase in demand and shortage of new homes.
Low impact of foreclosures
Foreclosures have a significant impact in the real estate industry of the United States. Nevertheless, the rate of foreclosures in Germantown Nashville is low at 0.8 homes for every 10,000 homes. Such a rate is relatively lower in comparison to the condition in Washington Metro with a value of 1.7. With respect to the rising value and price of homes in the city, it is highly likely that the foreclosure value will reduce in 2018, with a projected lower impact in the region’s real estate industry.
Evidently, Germantown has experienced significant growth in its real estate industry, which is relative to the case in the whole of Nashville. It is expected that the homes in Germantown will continue to rise in value and price in 2018, and in the future.