Tennessee – “Volunteering” to Lead the Way in Housing Recovery
Economists around the Volunteer State say that the manufacturing industry is going to help lead the way for Tennessee’s economy in 2013. That’s a major accomplishment, considering that this state lost 18% of its manufacturing jobs between 2007 and 2012!
But manufacturing isn’t the only thing helping this state right now. Economists say Tennessee’s housing market is also going to play a key role in getting this state out of the doldrums left behind by the Great Recession and back to prosperity!
According to realtors in Middle Tennessee, the numbers back up that prediction. By the end of 2012, the number of home sales in Middle Tennessee was 27% higher than it was in 2011, and the average sales price was $7,000 higher. Builders were also feeling better about things, since the number of new homes under construction had jumped a whopping 34%, when compared to 2011.
By the end of 2012, some economists had declared that Knoxville had fully recovered from the recession. The unemployment rate here was hovering right around 6%, which is nearly two full points better than the national average. So, just how busy were realtors in Knoxville?
After seeing a slew of housing developments that had been started – but never finished – the number of new housing permits wet up 18% in 2012. Realtors here say there is a lot of new high-end growth planned for West Knoxville in 2013.
What about in the state’s biggest city – Memphis?
According to a report issued by the Federal Reserve in January 2013, the economy in Memphis is “stable”. The Fed even mentioned all of the development going on in Downtown Memphis’ medical district.
But what about Memphis’ housing market?
By the time 2013 began, fewer homes were going through the foreclosure process. There were still a large number of underwater homeowners (just over 30%, to be exact). That’s slightly better than things were in the prior quarter, but until Memphis homeowners can get out from under their mortgages, they won’t be able to sell their homes.
Still, though, the number of home sales around Memphis jumped 17% in 2012, when compared to the year before. So, the homeowners who don’t have negative equity are more than willing to sell – and people are more than willing to buy!
Realtors in Nashville have much better news to share. They’re dealing with the best home sale numbers since 2007! In fact, more than 26,000 homes were sold here throughout 2012. At the end of 2012, the median price was $188,000. That’s exactly what it was at the end of 2007. Talk about a step in the right direction!