In recent years, Williamson County has become one of Tennessee’s fastest-growing counties. By extension, Brentwood’s population has increased over 17.5% since 2020 and continues to grow. From its close proximity to Nashville to its beautiful luxury homes, Brentwood has become one of the most highly sought-after real estate markets in Central Tennessee. Yet, since Brentwood has been in the midst of a competitive real estate market since 2021, many residents wonder whether this trend will continue into 2023. Will Brentwood, TN, luxury real estate retain its value, or will home prices drop? Here’s what Brentwood homeowners can expect for 2023 and beyond.
Housing market highlights of 2022
Similar to many real estate markets across the nation, Brentwood had an incredibly competitive real estate market in 2021 and 2022, creating a seller’s market. Since 2019, home values throughout the Nashville Metropolitan area have increased significantly, with homes appreciating up to 47.6% in value during a 3-year period. This is especially true for luxury real estate markets throughout Williamson County, including Brentwood, where demand for quality housing was at its peak. As of November 2022, the median sales price for Brentwood, TN, real estate was $1,301,333, which is a 19.4% increase from November 2021.
Market activity in 2022 vs. 2023
Brentwood’s heightened real estate activity during 2021 and 2022 can be attributed to many different factors. Nationwide, buyers had some of the lowest interest rates in recorded history, with rates dropping down to 2.65% in January 2021. Up until September 2022, interest rates stayed below 3.75%, which increased the demand for quality housing. Along with low-interest rates, the Nashville area has experienced exponential growth in recent years. With over 1.2 million residents in the Nashville Metropolitan area, Nashville and the surrounding area is growing at a rate of 1.73% annually, with Brentwood and other Williamson County cities experiencing the most growth.
All of these factors, combined with an increased number of prospective residents moving to the area, meant demand for real estate was at an all-time high while home inventory was limited. Disruption in supply chains and increased labor costs meant fewer homes were being built, which also contributed to a housing shortage.
As a result, Brentwood home values increased through 2021 and 2022. Buyers in every price range found themselves in bidding wars, competing against multiple buyers who were interested in the same properties.
On average, Brentwood homes were on the market from 10 to 18 days during 2021 and 2022. So what does this mean for buyers and sellers in 2023?
Factors that will influence Brentwood property values
Many prospective buyers and sellers have been speculating on what’s ahead for Brentwood’s local market in 2023 and beyond. In October 2022, interest rates increased to over 7% for the first time since 2008. Because of this, combined with an impending 2023 recession, many people are worried we might experience another housing bubble similar to what occurred in 2007/2008.
Are we going to experience another housing crisis in Brentwood? So far, that seems unlikely. The factors that contributed to the 2008 recession versus the 2023 recession are highly different. The 2023 recession is due to 40-year high inflation rates in 2022, as well as a decrease in supply chains and worldwide labor shortages. In contrast, the 2008 housing crisis occurred due to cheap credit and lax lending practices, which meant people were qualifying for loans they could not repay. This led to millions of home foreclosures, as well as an influx of mass unemployment, among other crises. As of 2022, we are currently experiencing a recession, yet employee demand is at an all-time high. As a result, both recessions look quite different.
Along with interest rates, there are many other factors that influence local market activity, some of which even negate the negative effects of a recession. Similar to many other cities in Central Tennessee, Brentwood is experiencing positive growth, both in population and home values. In fact, Nashville is projected to be one of the fastest-growing cities by 2060. This growth will extend out to the towns and cities within the 10 counties surrounding Nashville, which includes Brentwood.
What is contributing to the area’s growth? The local economy is likely one of the strongest factors since the Nashville Metropolitan area has one of the healthiest economies in the nation. In Brentwood, the current unemployment rate is currently 3.2%, which is significantly lower than the national average. What’s even more promising is the area’s job growth rate, which is projected to be over 50.7% over the next 10 years. Local economies are one of the driving factors behind property values. Areas with healthy job markets attract young and middle-aged professionals, which means more residents will relocate to the area. As more residents move to the area, so does the demand for quality housing.
Whether you are a working professional or a retiree, local economies are relevant since they are one of the strongest predictors of property values. As Brentwood’s local economy continues to flourish, so will home values.
Is real estate a solid investment?
As residents continue their search for homes for sale in Brentwood, TN, many wonder whether or not real estate is a savvy investment going into 2023. As interest rates increase, buyer activity will likely slow down compared to 2023. Will this negatively impact the local market? While buyer activity will likely slow down, it will not cease. As the Nashville Metropolitan area continues to grow, so will the demand for housing. As a result, there will continue to be a steady stream of buyers in the area, which is good news for sellers and investors. The good news for buyers is there will be more available inventory than in 2023 as homebuilders begin to catch up with demand.
As a result, buyers will have more homes to choose from, which means the local real estate market will be steady, which is a positive for buyers, sellers, and investors. As a result, there has never been a better time to buy or sell real estate in Brentwood, Tennessee.
Are you ready to find your dream home in Williamson County? Ashley Boykin is your local expert on Brentwood, TN, real estate. With a lifetime of industry experience and local expertise on her side, trust Ashley to help you find your perfect home. Contact Ashley to get started today.
*Header photo courtesy of Ashley Boykin
