Have you considered earning attractive financial returns while your investments are secured by real estate valued well below appraised values? Given the continued challenges in the domestic and international stock markets and low returns in many other securities, one of the most attractive investments is investing in small, high-yield real estate projects. Although many individuals choose to earn 1% to 4% per annum on their money market accounts and other liquid investments, our investment are better. To learn more about investment opportunities with Middle Tennessee Home Solutions, you  may also contact our office at me at (615)373-4287 to discuss our investment program.

Why Invest in Middle Tennessee?
A Demographic Review.

Middle Tennessee is affordable relative to other cities. Affordability is the relationship of the amount of income all homeowners have to apply toward their needs relative to area housing costs.  In Mar, 2008, Nashville Business Journal reported that Nashville ranked 16th among 50 major markets.  Median housing costs of $960 per month is 24% of personal income in Nashville, making Nashville more affordable than Atlanta, Austin, Richmond, and most other US markets.

Did you that know that prior to the recent domestic real estate slump and for many years prior, the greater Nashville area has been considered a “value” when compared to investments in other parts of the county. For example, the 2005 CNN/Money article stated that of 99 major markets across the US, 27 markets were considered “overvalued”, 29 “undervalued” and 43 “fairly valued”. Nashville was classified as “undervalued” (23rd from most undervalued). USA Today study a year later reviewed 229 markets. Nashville was “undervalued” and ranked 70th from lowest. USAToday Aug, 2005

In Nashville the housing market grew steadily for at least three years, one of the longest in the country as newcomers moved to the country music capital. But new home sales have been cut by a third as a result of national fallout from the credit crunch. However, the median price of a home is at an historic high of nearly $180,000. Housingpredictor.com forecasts 2008 appreciation of 1.8%. Although Nashville are inventories are higher than they have been over the past few years, prices have fallen little thus far.


Trends to Note and Charts to View

This first chart compares domestic mortgage rates with the number of houses sold in the Nashville area. Consistent decline in mortgage loan rates (shown 30-year fixed) has driven a steady increase in the number of houses sold over the past 17 years. The seasonal effect are shown but the major trend shows that transactions have begun to fall year-to-year.

The second chart shows Nashville area house prices have increased and now appear to have plateaued for the near term. The slowing market shows the inventory of houses available for purchase to have a significant recent build (in red).

The top three black charts show the long-term price escalation since 1999. Note that thiese black charts reflect only price appreciation and not rent, taxes, other financial effects of owning a home. For example, the average house price sold in Area 4 (Northeast Nashville, orange line) shows that prices have risen there about 45% (from 1.0 to 1.45). Note in the second chart that price growth has surged particularly across higher-priced areas (Belle Meade’s grew 110% (red from 1.0 to 2.1) and while Areas 8 (Percy Priest/Hickory Hollow) actually fell by 17% (from 1.0 to .83) since 1999.    The third black chart shows appreciation in areas surrounding Davidson Co.  The last chart normalized houses in select areas back to 1984.

Where are Middle Tennessee’s Newcomers from?

Florida is the leading place of origin for people moving to Middle Tennessee from outside the state, according to a Tennessean analysis. More than 23,000 Floridians relocated to the Metro area from 1989 to 2006, accounting for about 1 out of 10 newcomers. According to 2006 tax returns, Floridians mostly from Brower, Hillsboro, Pinellas, and Orange counties accounted for 1,677 newcomers. Southern California was second with 1,090, and Kentucky was third with 973. The remainder of the newcomers were mostly from Georgia, Texas, Louisiana, Alabama, and Illinois.