The current state of the Clarksville housing market leans towards a balanced scenario. With a median sale price lower than the national average and a competitive environment, both buyers and sellers have opportunities in this market. However, sellers may need to navigate strategically, considering the increased time on the market and the changing dynamics in pricing trends. Buyers, on the other hand, might find a range of options but should be mindful of the potential for multiple offers in certain cases.
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Clarksville Housing Market Trends
How is the Housing Market Doing Currently?
The Clarksville housing market in January 2024 exhibited significant changes compared to the previous year. According to Redfin, home prices experienced a robust growth of 10.7%, with the median price reaching $300K. However, this upward trajectory comes with an extended time on the market, as homes in Clarksville now sell after 79 days, a notable increase from 54 days the previous year. The number of homes sold also witnessed a decline, dropping from 229 to 180 in January.
How Competitive is the Clarksville Housing Market?
Clarksville's housing market presents an interesting mix of competitiveness. The median sale price in the area is 26% lower than the national average, positioning Clarksville as a somewhat competitive market. Homes tend to sell in 69 days, and it's worth noting that some properties receive multiple offers. On average, homes sell for approximately 2% below the list price, with a pending status achieved in around 69 days. However, there are instances where homes sell at or around list price, going pending in an expedited 36 days.
Are There Enough Homes for Sale in Clarksville to Meet Buyer Demand?
The Clarksville housing market, while competitive, faces challenges in meeting the demand for homes. The sale-to-list price ratio stands at 98.5%, experiencing a +0.7 pt year-over-year increase. However, the percentage of homes sold above list price has seen a -8.6 pt year-over-year decrease, indicating a shift in dynamics. Additionally, 20.5% of homes have experienced price drops, reflecting a -7.6 pt year-over-year decline, suggesting a market where sellers may need to make adjustments to attract buyers.
Looking ahead, the migration and relocation trends in Clarksville provide insights into the potential future market landscape. In the period from Nov '23 to Jan '24, 44% of homebuyers in Clarksville expressed a desire to move out of the area, while 56% looked to stay within the metropolitan region. Understanding these trends can offer valuable foresight into the evolving preferences of potential buyers and sellers.
Clarksville Housing Market Predictions for 2024 and 2025
Based on the forecast and current market conditions, there is no indication of a housing market crash. The modest fluctuations in the forecast suggest a steady and sustainable trajectory. According to Zillow, the average home value in Clarksville currently stands at $296,654, reflecting a 2.3% increase over the past year.
Homes in this area typically go pending in around 33 days, showcasing the demand for residential properties. Let's delve into the various housing metrics to gain a comprehensive understanding of the Clarksville housing market.
Key Housing Metrics Explained:
For Sale Inventory (January 31, 2024):
The current inventory in Clarksville stands at 747 homes available for sale as of January 31, 2024, indicating the range of options for potential buyers.
New Listings (January 31, 2024):
In the same timeframe, there have been 207 new listings, signifying a continuous influx of properties into the market.
Median Sale to List Ratio (December 31, 2023):
As of December 31, 2023, the median sale to list ratio is 1.000, showcasing a balanced relationship between listing prices and actual sale prices.
Median Sale Price (December 31, 2023):
The median sale price for homes in Clarksville at the end of 2023 was $284,500, providing insights into the affordability of the local real estate market.
Median List Price (January 31, 2024):
Looking at the current market, the median list price stands at $313,333, offering a snapshot of the prices sellers are aiming for in the current climate.
Percent of Sales Over/Under List Price (December 31, 2023):
Examining sales dynamics, 14.3% of transactions were above list price, while 43.5% were below list price as of December 31, 2023, indicating the negotiation landscape.
Clarksville MSA Housing Market Forecast:
Turning our attention to the broader perspective, the Metropolitan Statistical Area (MSA) housing market forecast for Clarksville, TN, reveals intriguing insights. According to the forecast data, as of January 31, 2024, the forecasted growth for the region is 0.1% by February 29, 2024, escalating to 0.9% by April 30, 2024, and a substantial 5.7% by January 31, 2025. This forecast indicates a positive trajectory, suggesting a buoyant real estate market in the coming months.
The Metropolitan Statistical Area (MSA) encompasses Clarksville, TN, and its surrounding counties. In this context, MSA refers to a geographical region with a high degree of social and economic integration centered around a core city. Clarksville MSA's housing market is substantial, with a diverse range of properties catering to different preferences and needs.
Are Home Prices Dropping in Clarksville?
As of the latest data, there is no indication of a drop in home prices in Clarksville. The average home value increase of 2.3% over the past year and the current median list price of $313,333 point towards a stable market. Buyers may need to act swiftly to secure properties, as the demand, reflected in the 33 days on average for homes to go pending, contributes to a competitive pricing environment.
Will the Clarksville Housing Market Crash?
Based on the current data and forecast, there is no immediate indication of a housing market crash in Clarksville. The forecasted growth rates of 0.1% by February 29, 2024, 0.9% by April 30, 2024, and a significant 5.7% by January 31, 2025, suggest a positive trajectory. However, it's crucial to monitor market dynamics and external factors that can influence real estate, as markets can be subject to changes over time.
Is Now a Good Time to Buy a House in Clarksville?
Considering the current state of the Clarksville housing market, the decision to buy a house depends on individual circumstances and goals. The market's competitive nature, with a median sale to list ratio of 1.000 and a median list price of $313,333, indicates a level playing field for both buyers and sellers. Prospective buyers may benefit from low-interest rates than last year and potential future market growth, making it a favorable time to enter the real estate market.
Should You Invest in the Clarksville TN Real Estate Market?
Investing in real estate is a significant decision, and it's essential to weigh the pros and cons carefully. When it comes to the Clarksville, TN real estate market, there are several compelling reasons for investors to consider. Let's explore these factors in detail:
1. Population Growth and Trends
Population growth is a key indicator of the potential for real estate investment. Clarksville has experienced consistent population growth over the years, driven by factors like its proximity to Nashville and the presence of Fort Campbell. Here's why this matters:
- Steady Population Increase: Clarksville's population has been steadily growing, creating a demand for housing. This trend is likely to continue, providing a consistent pool of potential tenants.
- Proximity to Nashville: As Nashville's housing prices rise, many individuals and families are looking to the more affordable Clarksville as a place to live. This demand is expected to drive the real estate market further.
- Fort Campbell: The presence of Fort Campbell contributes to a stable demand for rental properties, as military personnel often seek housing in the area.
2. Economy and Jobs
The local economy and job market play a vital role in determining the attractiveness of a real estate market. Clarksville's economic factors are favorable for real estate investors:
- Diverse Economy: Clarksville has a diverse economy, with sectors like manufacturing, healthcare, and retail contributing to job stability.
- Job Growth: The city has seen job growth over the years, driven by both its expanding population and the presence of Fort Campbell.
- Military Influence: Fort Campbell is a significant employer in the region, providing a consistent source of tenants and economic stability.
3. Livability and Other Factors
The overall livability of a city is an important consideration for real estate investors. Clarksville offers several factors that enhance its livability and, in turn, its real estate market:
- Quality of Life: Clarksville is known for its quality of life, with access to parks, recreational activities, and a strong sense of community.
- Education: The city hosts a variety of schools, making it an attractive option for families looking for quality education for their children.
- Affordability: Compared to major cities like Nashville, Clarksville offers more affordable housing options, which can attract both renters and potential homeowners.
4. Rental Property Market Size and Growth
For investors focused on rental properties, understanding the size and growth potential of the rental market is crucial:
- Strong Rental Demand: Clarksville's rental market remains robust due to factors like military personnel, college students, and individuals looking for affordable housing.
- Rental Property Options: Investors have a range of options, from single-family homes to multi-unit apartments, allowing for diversification in their portfolios.
- Rental Appreciation: Rental properties in Clarksville have experienced appreciating values, offering a potentially profitable investment opportunity.
5. Other Factors Related to Real Estate Investing
Finally, it's important to consider other factors that can influence your investment decisions:
- Tax Benefits: Tennessee is known for its favorable tax environment, which can enhance the financial benefits of real estate investment.
- Property Management: Professional property management services are available in Clarksville, making it easier for investors to manage their properties remotely.
- Market Predictions: Based on market predictions, Clarksville's real estate market is expected to continue growing, offering potential returns on investment.
Overall, the Clarksville, TN real estate market presents a compelling opportunity for investors. With population growth, a diverse economy, and a strong rental market, it offers a favorable environment for both long-term and short-term investment strategies. However, as with any investment, it's crucial to conduct thorough research, work with experienced professionals, and consider your financial goals and risk tolerance.