According to the latest Zillow Real Estate Market Reports, home values in Nashville decreased 5.6% in the second quarter of 2009, compared to the second quarter of 2008. Nationally, home values decreased 12.1% during this same period.
However, home values in Nashville increased 0.7% in the second quarter of 2009, compared with the first quarter of 2009. Nationally, home values decreased 4.3% during this same period.
A good way to summarize this information is that the Nashville real estate market is 2 times better off than the rest of the country since last year and more than 5 times better off since last quarter. It is a very good sign that Nashville prices are stabilizing faster than most other major cities.
Why is Nashville doing better than others? 3 simple factors are leading to a faster recovery in Nashville: 1) Nashville has not experienced significant job loss, 2) Nashville was not as over-saturated by new real estate product as most major markets, and 3) Nashville is experiencing positive population increase.
Coincidentally, rental rates have risen more than 5% since last Spring with 3% of that gain coming since the beginning of 2009.