Middle Tennessee State University’s latest “Housing Tennessee” report shows increasing home prices, although at a decreasing rate, and overall decreases in single-family and total home permits.
The MTSU Business and Economic Research Center’s statewide report for the first quarter of 2023 reveals housing inventory on the rise for the large metropolitan areas while closings are “slowly picking up,” noted report author Murat Arik, director of the BERC at MTSU.
Other report highlights:
• In Home sales, quarterly and annual closings were varied for the Nashville, Knoxville, and Memphis regions. Quarterly closings increased by 8.2% in Nashville and 2.5% in Knoxville while decreasing by 2.4% in Memphis. Year over year, closings declined by 25.3% in Nashville, 15.4% in Knoxville, and 24.7% in Memphis.
• Home prices for all Tennessee MSAs rose year-over-year, with the Johnson City MSA seeing the most significant jump of 21.6%, while the Clarksville MSA had the smallest annual growth of 9.4%.
Home prices from the previous quarter fell for Tennessee and the United States. Quarterly, Tennessee declined by 5.4% and the United States by 15%. Annually Tennessee and the United States grew by 11.8% and 8%, respectively.
• Tennessee’s total home construction permits increased from the previous quarter (+46%) but were down year-over-year (-23%).
• Annual mortgage delinquencies and foreclosure rates dropped for Tennessee and the United States.
See the full report and more detailed breakdowns at https://www.mtsu.edu/berc/housing/.
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.
THDA is the state’s housing finance agency and is committed to expanding safe, sound, affordable housing opportunities for low- and moderate-income Tennesseans. This is achieved through a robust home loan program, competitive funding for local nonprofit and municipal agencies, and the administration of nine federally funded programs.
THDA publishes research on affordable housing and THDA programs and beneficiaries. THDA also coordinates state planning for housing through the Consolidated Planning process, annual Action Plans, and annual Performance Reports. See http://thda.org for more information.
— Jimmy Hart (Jimmy.Hart@mtsu.edu)