Tennessee’s housing report for the third quarter of 2019 shows that despite a few downward trends, home prices and single-family permits were up for the quarter and from a year ago as mortgage delinquencies dropped over the same periods.
“Many of the economic indicators show considerable upward trends,” noted report author Murat Arik, director of MTSU’s Business and Economic Research Center. “Both mortgage and real estate transfer tax collections have sharply increased.”
Arik did note that multi-family home permits have noticeably decreased 25.8% compared to last year, indicating a decline in new projects. In addition, Tennessee’s homeowner and rental vacancy rates have shown sharp increases for the quarter.
Other report highlights:
HOUSING PRICES: Compared to the third quarter of 2018, housing prices have increased across all MSAs, Tennessee and the United States. The most significant increase was in the Morristown MSA (8.1%). The least significant of these increases were in the Jackson and Johnson City MSAs: increases of 3.9% and 3.8%, respectively.
Tennessee’s annual change in housing prices has exceeded the United States for the last four years.
CLOSINGS: Quarterly data indicate that Nashville, Knoxville and Memphis areas all exhibited growth in closings: 2.55%, 2.47% and 6.2%, respectively.
All areas experienced increases in closings compared to a year ago, with Nashville and Knoxville having considerable increases. Nashville closings increased 9.77%, Knoxville 10.21%, and Memphis 2.74%.
Inventories in all areas exhibited declines for the quarter and previous year.
BERC’s report is funded by Tennessee Housing Development Agency, or THDA. 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.