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Upswing continues as home prices rise

Staff Reports • Updated Sep 22, 2016 at 2:45 PM

MURFREESBORO – As the unemployment rate remains low, Tennessee’s housing market continued to perform well in the second quarter of 2016, according to the latest statewide report from the Middle Tennessee State University Business and Economic Research Center.

“One of the highest points this quarter is in the area of home closings and inventories,” said BERC director Murat Arik. “Every area tracked in this report showed positive performance over the quarter and especially over the year.”

Also, home prices are up in every area the report tracks for the first time in more than four quarters, with major growth in the Nashville MSA (up 9.8 percent), Jackson MSA (up 4.9 percent) and Morristown MSA (up 4.6 percent). Statewide, housing prices increased 6.3 percent versus 5.4 percent for the United States in the second quarter.

The report is funded by Tennessee Housing Development Agency to provide regular metrics on the state’s housing market. See the full report with detailed breakdowns and summaries at mtsu.edu/berc/housing.php.

Other report highlights included:

• Tennessee quarterly homeowner and rental vacancy rates declined.

• During the year, Tennessee housing permits outperformed the South and the U.S.

• During the year, inventory fell and home sales rose in all three metro areas, Memphis, Nashville and Knoxville.

• Mortgage delinquency rates are down overall for Tennessee.

Under contract with THDA, BERC releases the Tennessee Housing Market report each quarter. 

The 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. For more information, visit mtsu.edu/berc.

 THDA publishes research on affordable housing, its programs and beneficiaries. THDA also coordinates state planning for housing through the consolidated planning process, annual action plans and annual performance reports. Visit thda.org/research-planning/research-planning for more information.

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