An expert believes Tennessee could offer real estate investors lucrative opportunities in the next five years, according to a report.
Speaking to personal finance resource website GoBankingRates, Good as Sold Homebuyers owner Mike Qiu said investors might want to capitalize on Tennessee's "upward trajectory" amid its rapid growth and favorable tax environment.
"Tennessee has recently emerged as a sought-after destination for real estate investment," Qiu said.
"Cities like Nashville and Memphis are experiencing rapid growth, driven by factors such as affordable housing, a favorable tax environment, and a thriving music and entertainment industry. These factors position Tennessee as an attractive state for investors seeking to capitalize on its upward trajectory," he continued.
Aaron May, a Realtor with Coastal Luxury Real Estate Partners, echoed Qiu's prediction. He also noted Nashville as one of the cities in Tennessee to have shown "remarkable growth."
Nashville, in particular, has seen remarkable growth, fueled by its vibrant music and entertainment industry. With no state income tax and a steady influx of young professionals, the real estate market in Tennessee holds promise for the future," May said.
Tennessee's Real Estate Market in 2023
In November 2023, home prices in Tennessee rose by 3.2% compared to the same month in 2022, hitting a median price of $365,400. The number of newly listed homes increased by 5.4% in November last year to 7,125, giving the state an average of four month's supply. However, the number of homes sold fell by 4.2% year-over-year.
Predictions for Tennessee's Real Estate Market in 2024
For this year, the number of year-over-year home sales in Tennessee is expected to decrease between 3.6% to 11.4%, depending on the city. Home prices are also expected to fall in Memphis and Nashville but increase in Chattanooga and Knoxville, per predictions from Realtor.com.
Nationally, home prices are predicted to decline in 2024 by at least 1.7%. Home prices are also expected to fall by less than 2% for the year-over-year average. At the same time, the median income for American households to purchase a home would also decrease to an average of 34.9%.
