Investor interest in Nashville’s domestic market softens | Brentwood homepage

Investor interest in the Nashville housing market is fading somewhat, creating an opening for potential buyers, according to new data from redfin.

The brokerage and data firm found that investors purchased nearly a quarter of homes sold in the Nashville area in the first quarter of 2022, but the total number of Nashville homes purchased by investors fell by more. down 16% from the fourth quarter of 2021. This was partly due to a general slowdown in the housing market, with national trends allowing investors to capture a larger share of the market while buying fewer homes than in the past. previous record quarters.

According to Redfin, home purchases by investors increased at the start of the pandemic. Investors bought around 59,558 homes nationwide in the first quarter of 2021, and that number jumped to 87,910 homes in the fourth quarter of this year.

Local real estate agent Milton Greene said investors may gravitate more towards commercial and multi-family properties rather than single-family homes. And that could mean it’s a good time for independent buyers to enter the market, despite rising interest rates.

“It’s good for repeat homebuyers because they’re no longer competing with conglomerates and hedge funds and investors in single-family homes,” he said. “Although some people are seeing their price go down, for those who are still able to buy, they won’t have as much competition with people who have unlimited sources of cash, which was the problem that sort of triggered this early housing market problem. .”

However, while the market is improving for future owners, the rental market is deteriorating. east nashville among the best cities for increases in rental rates, according to multiple reports.

Milton Green

Milton Green

With rising rents, Green notes an additional upside to the homebuying market. (Yet rent increases make it more difficult for most potential buyers to save for a down payment.)

“Awareness of generational wealth in real estate being more prevalent now, that’s why people who used to rent now understand the value of a home,” Greene said. “People who have friends who buy homes see the equity they’ve invested in their home over time. Why waste money paying for something you’ll never own when you could be buying something that will increase in value over time? »