The latest “Housing Tennessee” report from Middle Tennessee State University (MTSU) presents a nuanced view of the state’s housing market as it heads into spring 2024. The report, prepared by the MTSU Business and Economic Research Center (BERC), reflects a combination of strong economic indicators alongside some areas of concern.
According to Murat Arik, the director of BERC and author of the report, the Tennessee housing market is currently in a phase where positive and negative factors converge. Despite economic pressures indicated by metrics like weekly jobless claims and vacancy rates, there are significant signs of growth. These include a robust increase in employment and a notable rise in both single-family and total home permits, with home prices continuing to climb by 5.4% annually.
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Key findings from the fourth quarter of 2023 report include:
– Single-family permits experienced substantial growth across Tennessee, the South, and nationwide, with annual increases of 34.6%, 25%, and 26%, respectively. Multi-family permits showed a mixed picture, with Tennessee seeing a dramatic 141% annual increase, while the South and the U.S. faced declines.
– Home prices in Tennessee’s Metropolitan Statistical Areas (MSAs) consistently rose, with the Cleveland MSA recording the highest annual increase at 14.8%. Conversely, Memphis saw the smallest growth.
– The overall trend for home sales varied across the state. Memphis enjoyed a 10% increase, while Knoxville and Nashville saw declines. A downward trend in annual home sales closings was observed across all regions.
– Homeowner and rental vacancy rates, as well as mortgage delinquency rates and foreclosures, showed significant fluctuations both annually and quarterly, mirroring the national trend.
Arik emphasized the importance of vigilance and strategic planning to navigate potential economic challenges in the state’s housing market. The full report, which offers a comprehensive overview of Tennessee’s economy in relation to the housing market, is available at https://www.mtsu.edu/berc/housing/.
The BERC report is supported by the Tennessee Housing Development Agency (THDA), and aims to provide valuable insights into employment, housing construction, rental vacancy rates, real estate transactions, and more. For additional information, visit http://mtsu.edu/berc/.
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Tennessee Updates Maximum Interest Rate to 12.50%
The Tennessee Department of Financial Institutions, led by Commissioner Greg Gonzales, has set the new maximum formula interest rate at 12.50% per annum, effective from March 19, 2024, based on the prime loan rate plus 4%.