So what I am seeing. Everything in middle Tennessee is double than what it was. 3 months ago. Interest rates are 7% now. The market has completely wiped out the local buyers they can't afford the homes on Tennessee wages. The migration buyers have completely dwindled. A correction is coming up. Office workers are being told they have to come back. They bought houses at extremely high prices for Tennessee they won't be able to sell them and move back will either lose their job or have to sell at huge discount. An interesting time is coming. I moved from Utah and bought my house in 2010. Sold in the beginning of September. Waiting for the right one to fall on my lap. Inventory is starting to pile up. Prices will come down. Locals who have their homes overpriced hoping for a slam dunk, that time is over. The train has left the building. Looking at property now I will probably just build my own I have all the time in the world.
I think you pretty much hit the nail on the head. We are pricing homes according to recent comps and it’s just not working. It’s almost like you need to price your home according to 2020 prices now.
@@Matt.Bogosian I am looking at property today, if I decide to buy maybe you can help me find something. My agent now has no clue what is coming and is saying I am low balling everyone. I am being realistic I think.
Thank you for the update, definitely becoming a more balanced market. I think the next shift will come if Remote workers are called back into the office. Everyday we are seeing the shift of companies telling employees they will need to come back to the office even if it is only 3 days a week. This will be hard if your employer is in Ca. and you live in TN. Changes are a happening.....
Chances are the employees will not be able to move back to CA fromTN unless they saved a lot of equity from the sale of their house or were renters who didn't take a salary cut moving to a cheaper state.
I think how far the price of homes go down depends on the area/state you live in. Those states like Idaho etc that had a huge boom will go down the most. In my area in CA prices really haven't gone down but stayed steady and instead of selling in a day they're on the market 1-2 weeks.
Jay it seems like the people that own all the larger acreage lots are older and not as desperate to sell. In addition to that they have a emotional attachment to the land and they aren't willing to budge as much. I think opportunites could come up but I don't expect to see a ton of them.
It’s hanging in there. I am seeing lots of price drops and seller paid closing costs but I wouldn’t call it a crash. I’ll try to post an update as soon as I can.
Matt - What do you think about what Dave Ramsey has said about real estate? That it’s not going down, that it will level out to more normalized rates of return going forward but the supply/demand imbalance dynamic will not allow prices to fall. Thanks.
Jon if things continue like they are I believe builders and sellers will probably drop their prices. All it will take is a motivated seller or two to start at a lower price and then it creates a domino effect. Hopefully that doesn’t happen but right now it feels slower than a normal market.
The real estate market was the topic of correction prior to COVID-19 hit. Once COVID-19 was the topic you didn’t hear about the issues of real estate. However now that COVID-19 isn’t the hot topic and America is now dealing with inflation and recession real estate is back and about to take a hit. Many desirable states, cities and towns will survive but will see a correction of some kind. Many other states,cities and towns will definitely not be as lucky. There are 10 states and cities that real estate prices shot up dramatically and truly can’t justify those increases or maintain them during the correction. For those who can wait out this correction you will find spectacular properties for far less . Hopefully once the interest rates begin to decrease will be a better time to buy or build . For those who can’t and are fortunate to sell high and take their equity and pay cash I believe it’s a wash. As long as they understand that those properties won’t be appraised at these current prices. As they say real estate comes down to opportunity, timing and location for buyers and investors.
Here in East TN looks like it has slowed down also. But yet, we just had an appraisal done on our waterfront home for an equity loan and it came back $115K higher than we paid back in Dec 2021.
@@myd0gr3x I stand by my statement. Hard for them to make money from interest when it sits in foreclosure until it’s sold, generally a lot less than the original loan was for. I guarantee you the bank doesn’t want to go thru with that long process.
So what I am seeing.
Everything in middle Tennessee is double than what it was. 3 months ago.
Interest rates are 7% now.
The market has completely wiped out the local buyers they can't afford the homes on Tennessee wages.
The migration buyers have completely dwindled.
A correction is coming up.
Office workers are being told they have to come back.
They bought houses at extremely high prices for Tennessee they won't be able to sell them and move back will either lose their job or have to sell at huge discount.
An interesting time is coming.
I moved from Utah and bought my house in 2010.
Sold in the beginning of September.
Waiting for the right one to fall on my lap.
Inventory is starting to pile up.
Prices will come down.
Locals who have their homes overpriced hoping for a slam dunk, that time is over.
The train has left the building.
Looking at property now I will probably just build my own I have all the time in the world.
I think you pretty much hit the nail on the head. We are pricing homes according to recent comps and it’s just not working. It’s almost like you need to price your home according to 2020 prices now.
@@Matt.Bogosian I am looking at property today, if I decide to buy maybe you can help me find something.
My agent now has no clue what is coming and is saying I am low balling everyone.
I am being realistic I think.
Great insight as always! Thanks Matt
You’re welcome Mel!
I’m just waiting for it to implode
I think 2023 will be a good year to buy. If demand doesn’t ramp up in the spring there will be a lot of good deals to be had.
Thank you for the update, definitely becoming a more balanced market. I think the next shift will come if Remote workers are called back into the office. Everyday we are seeing the shift of companies telling employees they will need to come back to the office even if it is only 3 days a week. This will be hard if your employer is in Ca. and you live in TN. Changes are a happening.....
Yes I didn’t even think about that. That will be interesting to watch unfold.
Chances are the employees will not be able to move back to CA fromTN unless they saved a lot of equity from the sale of their house or were renters who didn't take a salary cut moving to a cheaper state.
I think how far the price of homes go down depends on the area/state you live in. Those states like Idaho etc that had a huge boom will go down the most. In my area in CA prices really haven't gone down but stayed steady and instead of selling in a day they're on the market 1-2 weeks.
We had pretty big price increases here in Middle TN. I am hoping prices will hold but there is certainly pressure starting to mount.
Hi Matt, Have you done an update to this video? Thanks.
Not in a while. I’m probably due to put one together though. I’ll try to do that this week.
@@Matt.Bogosian That would be great. Thanks.
Hello Matt, What is your observation towards Big Land Lots (30+ Acres)? Is it going down too?
Jay it seems like the people that own all the larger acreage lots are older and not as desperate to sell. In addition to that they have a emotional attachment to the land and they aren't willing to budge as much. I think opportunites could come up but I don't expect to see a ton of them.
Thank you
Do you deal w land in east TN? Mostly Greene, Hawkins, Hancock, Jefferson county?
@@JayJay-wv1vx I do not.
Moving to Tennessee with my folks next week! Somewhere between Paris and clarksville! We are stoked! Canada sucks!
That awesome! I have some clients from Calgary that will be moving here. They hate Canada too.
@@Matt.Bogosian hahahaha awesome!!
Welcome to Tennessee USA ♡♡♡
It’s that way all over. I live in AZ. and it’s the same way here. It going to be a buyer’s market.
Yes I am hearing that from other Realtor friends as well. So crazy how things changed so quickly.
@@Matt.Bogosian I USED TO SELL REAL ESTATE IN THE EARLY 2000 in AZ. It was always changing. Hang in there. Good luck.
It's definitely a roller coaster ride. I am ready for the cahllenge though.
Thank God...
👍
So how's the housing market in middle and East TN now since this video is a couple of months ago?
It’s hanging in there. I am seeing lots of price drops and seller paid closing costs but I wouldn’t call it a crash. I’ll try to post an update as soon as I can.
@@Matt.Bogosian I'm planning on bldg houses under 275k in East TN. Any advice on doing that?
I've been looking for a 2nd home around Townsend.. prices have been overpriced for 7 years. Now the deals are a coming ;)
Matt - What do you think about what Dave Ramsey has said about real estate? That it’s not going down, that it will level out to more normalized rates of return going forward but the supply/demand imbalance dynamic will not allow prices to fall. Thanks.
Jon if things continue like they are I believe builders and sellers will probably drop their prices. All it will take is a motivated seller or two to start at a lower price and then it creates a domino effect. Hopefully that doesn’t happen but right now it feels slower than a normal market.
@@toddsmith5894 hey Todd where abouts are you building and flipping?
The real estate market was the topic of correction prior to COVID-19 hit. Once COVID-19 was the topic you didn’t hear about the issues of real estate. However now that COVID-19 isn’t the hot topic and America is now dealing with inflation and recession real estate is back and about to take a hit. Many desirable states, cities and towns will survive but will see a correction of some kind. Many other states,cities and towns will definitely not be as lucky. There are 10 states and cities that real estate prices shot up dramatically and truly can’t justify those increases or maintain them during the correction. For those who can wait out this correction you will find spectacular properties for far less . Hopefully once the interest rates begin to decrease will be a better time to buy or build . For those who can’t and are fortunate to sell high and take their equity and pay cash I believe it’s a wash. As long as they understand that those properties won’t be appraised at these current prices. As they say real estate comes down to opportunity, timing and location for buyers and investors.
Saul that’s right I do remember people saying there would be a crash even before all of this happened. It goes in cycles.
So true
But I am optimistic that people will still buy and sell homes. There should still be plenty of business to go around. I hope…. 😬😬😬
Drop those price and interest rates
I just checked and home values were up 4.7% in June for Williamson County. Some counties are down such as Davidson and Rutherford.
Here in East TN looks like it has slowed down also. But yet, we just had an appraisal done on our waterfront home for an equity loan and it came back $115K higher than we paid back in Dec 2021.
@@myd0gr3x The banks don’t want you to fail. It cost them money.
@@myd0gr3x I stand by my statement. Hard for them to make money from interest when it sits in foreclosure until it’s sold, generally a lot less than the original loan was for. I guarantee you the bank doesn’t want to go thru with that long process.