US Housing Market Slow Start and Tennessee Market Analysis

SOURCE www.zerohedge.com
The US housing market is off to a slow start in the spring selling season, with Tennessee showing alarming figures of soaring housing supply. Experts predict a modest correction in the market due to increasing inventory levels.

Key Points

  • Inventory is spiking in Tennessee due to a slowdown in buyer demand and a large pipeline of builder inventory.
  • Affordability issues are a concern with mortgage payments now at 35% of the state's median household income.
  • Rising inventory could lead to a contraction in market growth as 2025 progresses.
  • Nashville and Knoxville are experiencing significant increases in housing supply, potentially leading to a market correction.
  • Interest rate spikes in 2022 have impacted the Nashville housing market.

Pros

  • Experts predict a modest correction in the market due to rising inventory levels.

Cons

  • Affordability issues are plaguing buyers in Tennessee, with mortgage payments reaching 35% of the state's median household income.