Is the Clarksville, Tennessee area a good place to invest in real estate? It is hard to answer that immediately given how many have no idea where Clarksville, Tennessee is. Let’s learn more about Clarksville, TN before we share the pros and cons of investing in the Clarksville TN real estate market. Clarksville is a growing city with a well-preserved small-town feel.
It is a city with general appeal to both millennials and retirees. Clarksville is home to roughly 150,000 people. It is the principal central city of the Clarksville, TN–KY MSA, which consists of Montgomery and Stewart counties in Tennessee, and Christian and Trigg counties in Kentucky. In fact, Clarksville is starting to be called a suburb of Nashville, Tennessee. It is an hour’s drive to Nashville with good traffic.
That means the growth of the Nashville metro area will increase the value of any Clarksville real estate investment. However, the Clarksville housing market is much larger than this. The Clarksville metro area covers several smaller cities and extends into Tennessee. The entire Clarksville housing market includes more than three hundred thousand people. Is it a good time to invest in the Clarksville real estate? We won’t waste your time bragging about local attractions that may or may not lead tourists to stop there on their way to other parts of the country.
In 2019, Money magazine ranked Clarksville No. 1 in the list of best places to live. Several factors were cited like the city attracting young home buyers and retirees with its relatively affordable prices, charming downtown, growing economy & jobs, proximity to Nashville and the influx of tech companies such as Google and LG bringing hundreds of jobs in the coming years. Cost of living in Clarksville is among the lowest in Tennessee and so are median home prices. The median home price in Clarksville is around $145,000, which is 4.1% lower than the Tennessee average.
Home prices in Clarksville are nowhere the Nashville real estate market, but as Montgomery County continues to grow in population, and with urbanization taking place, home values in Clarksville are also rising rapidly. The nearby Fort Campbell Military Reservation is a mainstay of Clarksville's economy and Austin Peay State University is the largest non-military employer. In the latest quarter, real estate appreciation rates in Clarksville have been around 1.6% to 2%.
If they remain steady, the annualized appreciation rate would be around 6.4% to 8%, which could trigger a massive interest in the real estate investment opportunities in Clarksville. In this article, we shall discuss some more important reasons why you may want to consider buying Clarksville investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Clarksville (or any other market) and some of these variables are impossible to predict in advance.
What Makes Clarksville a Hot Place For Real Estate Investment? |
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Clarksville TN Real Estate Market Forecast 2020
What are the Clarksville real estate market predictions for 2020? Clarksville housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in Tennessee. The latest real estate data from Zillow shows that the current median home value in Clarksville is $172,449. Clarksville is currently a seller’s market – which means there are a lot of qualified buyers in the market place and not enough homes for sale in the market.
The home prices have risen by 3.4% over the last year. Looking forward in this year, the Clarksville real estate market forecast is that home prices will continue to increase by 3.4%. Since 2016, the median home price in Clarksville has increased from $146,000 to $172,500.
Here is the Clarksville, TN real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.4% till Nov 2020.
The median list price per square foot in Clarksville is $118, which is higher than the Clarksville Metro average of $114. The median price of current listings in Clarksville is $232,900. The median rent price in Clarksville is $1,150, which is higher than the Clarksville Metro median of $1,100.
Zillow reports that 7.2% of the listings in Clarksville had a price cut in Nov 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median price per square foot in Clarksville in November 2019 was $118.
Clarksville Housing Market Forecast 2019 – 2021
Here is a short and crisp Clarksville housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Clarksville is 82% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Clarksville is 82% during this period. If this price forecast is correct, the Clarksville home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018. Check this page each quarter for updates to the Clarksville, TN Real Estate Market Forecast.
Clarksville TN Real Estate Market Trends
We shall now discuss some of the latest real estate market trends in the Clarksville such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. Relative affordability, Nashville's soaring growth and location are some of the distinguishing factors making Clarksville real estate market an extremely alluring place for investment in 2020.
Trulia has currently 1,412 resale and new homes for sale in Clarksville, TN including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price is $184,500 and homes are selling for about $153/sqft.
As per the real estate company called Neigborhoodscout.com, the median house price in Clarksville is $169,179, which indicates that home prices in Clarksville are around the national average for all cities and towns in the United States. Three and four bedroom single-family detached homes are the most common housing units in Clarksville. Other types of housing that are prevalent in Clarksville include duplexes, row houses and homes converted to apartments.
Currently, there are 1255 single family homes for sale in Clarksville,TN on Zillow. Additionally, there are 241 single family homes for rent in Clarksville, TN. Under potential listings, there are about 14 Foreclosed and 188 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
In the past month, 416 homes have been sold in Clarksville, TN on Redfin.com. In addition to houses in Clarksville, there were also 6 condos, 28 townhouses, and 8 multi-family units for sale in Clarksville last month. According their statistics, the Clarksville housing market is somewhat competitive. The average sale price of a home in Clarksville was $210K last month, up 18.3% since last year. The average sale price per square foot in Clarksville is $111, up 8.8% since last year. A hot listing in Clarksville can sell for around list price and go pending in around 28 days.
Here is the latest Clarksville housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
Clarksville Housing Market Trends in Dec 2019 |
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| Median List Price | $230,000 |
| Avg. Sale / List | 99.2% |
| Median List $/Sq Ft | $115 |
| Median Sale Price | $210,000 |
| Median Sale $/Sq Ft | $111 |
There are currently 1238 homes for sale in Clarksville, TN on Realtor.com. The asking price of single family homes can start from $69,000 and can go up to $1.8M for a luxury property. There are currently 548 rental properties in Clarksville and their rent prices range from $465 to $3,500 per month. There are 3 new construction homes for sale in Clarksville within a price range of $230,000 to $245,000.
The new construction homes are located in Park Lane, which is the most expensive neighborhood in Clarksville. Park Lane is a popular neighborhood for buyers who can afford to buy a home in the median price range of $200,000. According to Realtor.com, the median list price of homes in Clarksville, TN was $215.3K in December 2019, trending up 7.7% year-over-year. The median listing price per square foot was $115.
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. The median list price in Clarksville, TN is $264,900 on Movoto.com. The median list price in Clarksville was less than 1% change from December to January. Clarksville's home resale inventories is 840, which decreased 1 percent since December 2020. The median list price per square foot in Clarksville is $121.
As you can see in the graph, the median price per sq ft rose to its peak value in Nov 2019, when it was $121. In December 2019 it was the same at $121. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
Clarksville is a not walkable city in Montgomery County. Some of the popular neighborhoods in Clarksville, Tennessee are Ringgold, Woodlawn Estates, Windermere, Aspen Grove, Hermitage Estates, Downtown Clarksville, Madison Street, New Providence, Stones Manor, Bel Air Estates, Hazelwood, Idaho Springs, Greenwood, West Creek and Ashland Hills. Park Lane has a median listing price of $200,000, making it the most expensive neighborhood. Brandon Hills is the most affordable neighborhood, with a median listing price of $122,000.
If you are looking to invest in the Clarksville real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Clarksville investment real estate and you should be able flip it for a lump sum profit. The neighborhoods in Clarksville must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls.
Clarksville, TN Foreclosures And Bank Owned Homes Statistics
As per the Clarksville foreclosure data by Zillow, the percent of delinquent mortgages in Clarksville is 1.0%, which is lower than the national value of 1.1%. There are currently 120 properties in Clarksville, TN that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 543. In November 2019, the number of properties that received a foreclosure filing in Clarksville, TN was 19% lower than the previous month and 19% lower than the same time last year.
| Total No. of Foreclosures in Clarksville | 120 (RealtyTrac) |
| Homes for Sale in Clarksville | 543 |
| Recently Sold | 3034 |
| Median List Price | $182,000 (1% rise vs Oct 2018) |
Is Clarksville a Good Place For Real Estate Investment?
Investing in good real estate markets is touted as a great way to become wealthy. Is Clarksville a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying a property in Clarksville is good investment? If you want to find out whether Clarksville real estate is a good investment or not, you need to drill deeper into local trends. The Clarksville real estate trends will tell what the market holds for the year 2020. We have already discussed the latest Clarksville housing market forecast for 2020.
Purchasing an investment property in Clarksville real estate is a little different from shopping for your car or primary residence. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Clarksville real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Clarksville that you might move into or sell at retirement in the future!
Either way, knowing your profit potential and purpose is the first thing to consider. When looking for the best real estate investments in Clarksville you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential. Let’s now discuss state of the Clarksville real estate market, which can help investors who are keen to buy an investment property in this city.
Clarksville Real Estate Prices
The Clarksville TN real estate market is quite affordable, though it has seen relatively high appreciation in the past few years. In 2017, the average home in the Clarksville housing market was worth 154,000 dollars, roughly 15K below the average home price in Tennessee. At the start of 2020, the average home price was just over 170,000 dollars. Property prices are appreciated at three to five percent a year.
Rental rates in the Clarksville TN real estate market were already higher than you’d otherwise expect due to the large military presence in the area. This is why median rents were around a thousand dollars a month a year or two ago and 1200 dollars a month today, though you could charge much more for a Clarksville real estate investment property with room for a family. Rents on a Clarksville real estate investment property would be roughly 80 cents per square foot.
Just over half of the Clarksville TN real estate market consists of renters. A side effect of the military base is that it provides a unique opportunity to find bargain Clarksville real estate investment properties. Homes here take two months or more to sell due to relatively weak demand, but those who bought a home and were moved to another base are eager to sell. These homes can be purchased at a discount by those who don’t want to be long-distance landlords.
The Economy
Clarksville, Tennessee is one of two cities that support Fort Campbell. The other is Hopkinsville, Kentucky. This creates a large number of jobs in the Clarksville TN real estate market and gives the city a median age nearly a decade below the Tennessee average. The Clarksville area’s unemployment rate is around four percent. This is in line with the national average but not so bad that it doesn’t attract people to the area. For example, the unemployment rate in the Clarksville housing market is almost a full point lower than in neighboring Kentucky.
And the area offers more jobs and higher paying jobs than the surrounding rural area. Per capita income in Clarksville is 55K, while the Tennessee average is 51K. The Clarksville area is seeing slow job growth, and that has positive, long-term implications for the Clarksville housing market. For example, the slow, steady job market growth compared to the stagnating job market in the surrounding rural areas led to 17 percent population growth in Clarksville and its suburbs. This is aside from the fact that the Nashville job market exploded 40 percent in the 2010s. For comparison, the national job market grew 15 percent between 2010 and 2020.
The Legal Climate
Tennessee is considered landlord friendly. The state has security deposit requirements, but it doesn’t require you to pay interest on deposits or issue receipts. You don’t have to have a written rental agreement if someone is staying less than three years, though that is recommended. Late fees don’t have to be written into the rental agreement, but the state of Tennessee has payment grace period laws and limits late fees to 10% of the rental rate. The state does require property owners to have a rental license.
In the Clarksville TN real estate market, you can terminate someone for nonpayment of rent in 14 days and lease violations in 30 days. The only exception is drug offenses and violent behavior. Depending on the criminal offense, they can be evicted immediately or have 72 hours to vacate the premises. Notice for entry is recommended but not required unless you’re showing the property. Nashville has tightened the screws on short-term rentals, and that’s increasing demand for short term rentals in suburbs like Clarksville.
The Tax Climate
Tennessee ranks lower than average in terms of its tax burden. It has one of the highest sales tax rates in the country. However, that doesn’t affect the value of a Clarksville real estate investment property. For property buyers, the very low property tax rate is a plus. The average property tax bill is under 0.7 percent of the property’s value.
Take the low property prices in the Clarksville housing market into account, and you have an incredibly low property tax bill. The average property tax bill in Tennessee is fifth lowest in the country, and the Clarksville TN real estate market is cheaper than average for the state of Tennessee.
Quality of Life
The military base has its pros and cons. It means that the city of Clarksville has a vibrant night life despite its small size. On the other hand, it brings more crime for the same reason. That’s why the city of Clarksville rated a C in terms of crime according to Niche. Public schools and amenities for families in the Clarksville area ranked a B. Note that this means the public schools are better than average.
The Clarksville area remains attractive to retirees and families because it puts them in easy reach of the Nashville metro area with its universities and world-class medical centers. The downside of all the people commuting on the few highways that connect to Nashville is that traffic is getting worse.
Investing in Clarksville Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Clarksville, TN but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Clarksville real estate investment? The Clarksville TN real estate market offers a number of strong fundamentals. There is a solid job market and massive rental market. As long as the military base doesn’t close, the area will see continual growth. Yet there isn’t enough demand to lead to a building boom that will kill property prices.
A good cash flow from Clarksville investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Clarksville real estate investment opportunity would be a key to your success. If you invest wisely in the Clarksville real estate, you could secure your future.
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the Clarksville TN real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the Clarksville housing market at the time you intend to purchase.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Clarksville real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Good Markets To Invest in Real Estate in 2020
Another good market to invest in real estate in 2020 is Trenton, NJ. Should you consider investing in the Trenton housing market? If you frame it as investing in the affordable end of the Philadelphia and New York real estate markets, then the answer is yes. If you want higher returns and less risk, then the answer is no. However, you can mitigate this by limiting Trenton real estate investment to the better areas in the city. This increases the amount of research required, but it does mean it is possible to buy and profit from real estate in the Trenton housing market.
Another good market to invest in real estate in 2020 is New Haven in Connecticut. The New Haven real estate market is a gem in the rough in the Northeast. It isn’t landlord friendly, nor does it generate incredibly high rental rates. However, it is a profitable real estate market that offers lower taxes and less red tape than nearby metro areas.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Latest Market Prices, Trends & Forecasts
https://www.zillow.com/clarksville-tn/home-values/
https://www.redfin.com/city/3918/TN/Clarksville/housing-market
https://www.movoto.com/clarksville-tn/market-trends/
https://www.realtor.com/realestateandhomes-search/Clarksville_TN/overview
Map
https://www.google.com/maps/place/clarksville
Foreclosures
https://www.realtytrac.com/statsandtrends/tn/montgomery-county/clarksville/
About Clarksville
https://en.wikipedia.org/wiki/Clarksville_metropolitan_area
https://www.theleafchronicle.com/story/news/local/clarksville/2019/05/15/clarksville-nashville-commute-speeds-up-growth-and-change/3427012002/
Property prices
http://www.city-data.com/city/Clarksville-Tennessee.html
https://www.military.com/base-guide/fort-campbell
Economy
https://www.wave3.com/2019/09/23/kentucky-unemployment-rate-increases
http://www.city-data.com/city/Clarksville-Tennessee.html
Quality of life
https://www.niche.com/places-to-live/clarksville-montgomery-tn/
Taxes
https://taxfoundation.org/state/tennessee/
Legal climate
https://www.avail.co/education/laws/tennessee-landlord-tenant-laws
https://www.landlordology.com/tennessee-landlord-tenant-laws/
https://www.tennessean.com/story/news/2019/08/21/nashville-airbnb-ban-short-term-vacation-rentals/2061739001/
