Nashville Area Home Price Growth Among U.S.'s Largest

NASHVILLE, TN -- Home values in the Nashville area grew 12.5 percent in 2017, the third-largest spike among the nation's largest markets, according to a new study.

The median home price climbed from $200,000 in 2016 to $224,900 in 2017 according to ATOMM Data Solutions. Only Kansas City, where home prices grew 13.4 percent, and Silicon Valley, where the jump was 13.3 percent, had larger growth.

Daren Blomquist, ATTOM's vice-president, told The Tennessean that in-movers are the reason for the increase, as people moving from markets with higher real estate prices are willing to pay more than relocating locals and still see it as a value-play.

But, Blomquist warns, it's best not to get used to it.

“There are some signs that it’s getting over-heated or over-valued. It’s just not sustainable to have double-digit appreciation, even if you’re having jobs coming in,” Blomquist told the paper.

Profits for sellers are, as one might expect, also booming. In the fourth quarter of 2017, the average seller sold their home for 51 percent more than they paid for it, higher than even the boom of the early 2000s.

Rosy-thinking analysts, though, say even if Nashville is in a bubble, the burst won't be as bad as last time, because the growth is based on fundamentally sound principles - low supply and increased demand - rather than frenzied lending.

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