Nashville Housing Market Explodes Despite Global Pandemic, With Millions Banning | New
NASHVILLE, TN (WSMV) – The housing market in Nashville is still booming despite a recession triggered by a pandemic.
This is because this year we have seen a low number of available housing units, due to the fact that many people are staying because of COVID. But a lot of Americans don’t budge because about 6% of our country is abstaining.
The inventory of homes for sale in Nashville is down 27% year over year. However, buyers are always on the lookout, so the available homes sell out quickly and for more money.
Economists said the low inventory is due to many potential sellers pressing a break to move due to uncertainty of what will happen in the near future due to the coronavirus.
On the other hand, millions of Americans take advantage of mortgage forbearance, which is when your mortgage lender allows you to temporarily suspend your mortgage payment due to financial hardship.
“We know that many homeowners are currently forborne on their loans. This was made possible by the Cares Act last spring, ”says Jeff Tucker, economist for Zillow.
More than 3 million Americans are currently in abstention.
The Cares Act made it easy for homeowners to get a three to 12 month deferral on their loan if they are going through a difficult time financially. However, once the 12 months have elapsed, you must resume your regular payments which, for many, will be next spring.
“It’s really hard to say what will happen after these 12 months,” Tucker said. “It’s totally unexplored territory. We’ve never had a forbearance program like this before in previous recessions and they weren’t motivated by a pandemic like this. But I think the worst-case scenario is that a significant fraction of borrowers might still be unable to pay their loans and then be forced to sell. “
The absolute worst case begins the foreclosure process. But experts say foreclosure isn’t as likely as it was during the 2008 recession because, on average, people have more equity in their homes.
WSMV.com is now with you on the go! Get the latest updates and videos, 4WARN weather forecasts, weather radar, special investigation reports, sports headlines and more from News4 Nashville.
Copyright 2020 WSMV (Meredith Company). All rights reserved.