Firm reports Nashville area a risk to see housing bubble burst in next two years




Firm reports Nashville area a risk to see housing bubble burst in next two years


NASHVILLE, Tenn.--A mortgage insurance provider's report on a potential housing bubble says while fears are overblown, Nashville is among the cities with the highest risk.
North Carolina-based Arch Mortgage Insurance offers risk management and financial services to help mortgage lenders protect investments according to the company's website.
In the report released on Tuesday, Arch MI examined the probability of home price declines over the next two years in America's 401 largest cities. They found the probability of a housing bubble in those cities is just 4 percent, an "unusually low number" according to the report.
When the firm examined the 50 largest metro areas, they found the Nashville-Davidson-Murfreesboro-Franklin area has a 35% risk of home prices dropping in the next two years. This was attributed to home prices rising faster than incomes, hurting affordability.
Joining the area for highest risk was the Ft. Lauderdale-Pompano Beach-Deerfield Beach, Florida area, also with a 35% risk of falling prices.
While the report states investors trying to wait for prices to fall before buying property may want to change their strategy. If the firm's report is accurate, that won't be the case for those in Music City.


Nechole Thompson
Affilate Broker
NextHome Music City Realty
1804 Williamson Court
Brentwood, Tn 37027
615-610-7111 ext 105
Nechole@mcreatlytn.com
nechole.nexthomemusciccity.com
by Adrian Mojica
Wednesday, October 25th 2017

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