Current conditions of the real estate sector in the United States have been favorable, according to industry sources. According to the data released by Realtor.com, the demand for properties have increased amid the pandemic, with unsold homes taking a dip to almost 22% as of April 2021.   

Additionally, more than half of active listings at the national level, including the state of Tennessee, have reduced, as real estate investors continue to snag properties for rentals and Airbnb services. 

Of the more than 50 states in the US, the state of Tennessee has enjoyed an increasing trend in terms of property values. Below, have a look at how the real estate industry has been performing in its capital Memphis and the other nearby areas.  

How Has The Tennessee Real Estate Market Been Performing Amid The Pandemic? 

Selling your house in Memphis is a good idea considering the favorable real estate trend that’s projected to continue for the whole year and likely beyond 2022.  

Positive Growth Overall  

Citing Middle Tennessee State University’s director of Business and Economic Research Center, Dr. Murat Arik, Tennessee’s local news channel, WTVF, has said that the real estate market has enjoyed a positive growth amid the COVID-19 pandemic. The high demand for Tennessee properties may been fueled by the desire to live in the suburban areas or metro cities with less congestion problems, such as New York and California. The media outlet also said that potential relocators find low interest rates and affordable living costs a major draw.  

Despite these rosy projections, market experts have mixed emotions about the overall high demand for properties, not just in Tennessee.    

Memphis Property Prices Have Slightly Dropped 

Online sources also reveal that real estate property listings in the areas of Nashville, Davidson, Murfreesboro, and Franklin, enjoyed an 11.2% uptick for April 2021 compared to April 2020. Possessing a median selling price of USD$417,000, real estate properties in Tennessee spend 15 days less on the market during the same period. This may be, in part, due to the 4% decline in real property values in the Tennessee capital of Memphis. So, if you have properties in the capital, you may need to hold back until the value prices increase before listing it.   

 ….But Property Values Continue To Increase Overall  

Neighborhoodscout.com indicated that Tennessee has always been included in the top US states with the highest appreciation rates. Properties in the sector have shown an average appreciation rate of almost 9% for 2020, the site added. 

How Has The Sector Fared Since A Few Years Ago? 

The Tennessee real estate market has shown a total appreciation average rate of almost 3.5% for two decades—from 2000 to 2020. This may not be a significant amount, but this reflects an overall robust real estate investment environment. 

Industry sources further reveal that the cities of Berry Hill, Oak Hill, Belle Meade, Summertown, Eagleville, and Nashville are few of the places with the highest property value increases since 2000. Forest Hills, Hartsville, Red Boiling Springs, and Sharps Chapel round up the top spots.    

Tennessee’s property market has attracted real estate investors from all parts of the US because of its relative affordability. Most of the residential and commercial properties in this southeastern US state are relatively priced at lower values compared to the average US prices. 

In addition, home buyers eyeing to have their properties rented will find that the demand for long-term rentals, including Airbnb, lucrative. Whether buying or flipping a house for rental, investors will enjoy a high return on investments (ROIs).   

3 Best Places To Invest In  

An industry survey has likewise revealed that in 2019 or the pre-pandemic period, the following localities are the most suitable real estate investments:

1. Nashville: This famous town isn’t only renowned for country music, but it’s also one of the most lucrative places to invest in. As of 2019, average property values in this locale is at USD$431,497, which is understandably pricey as compared to other cities. With its vibrant tourism sector, Nashville is a perfect area for investors looking to operate an Airbnb property. The median for Airbnb rental earnings in this town was reported at USD$3,089.  
2. Knoxville: With property prices lower than Nashville, pegged at USD$280,519 on average, Knoxville may be the second-best option for a real property investment in Tennessee. With a median rental income of USD$2,272, investing in a real estate asset in this area is a profitable venture. 
3. Erin: The average property investment returns in this town is a bit higher versus Auburntown, estimated at 8%. But, the median property prices are a bit costlier than the first two localities, pegged at USD$126,225. At USD$1,318, the average property rental costs in Erin is the highest in the state. Additionally, you may save significantly on lower living costs in this town.       

To Sum Up

The real estate sector in Tennessee shows a positive growth overall, with the capital Memphis showing a slight dip in terms of property selling prices. This means property sellers in other locales can sell their assets, while investors should consider buying new properties in the said state.