Welcome to the January 2025, Edition 1, of the CRV and Advanced Appraisal TN Newsletter, where we provide expert insights into residential and commercial real estate trends in Tennessee. Stay ahead with the latest market forecasts, economic updates, and property investment opportunities.
According to Collyn Wainwright, incoming president of Greater Nashville Realtors, 2025 will bring a stronger Nashville real estate market. Following the slower activity during the 2024 election year, pent-up demand is expected to emerge. Increased activity in the resale sector is anticipated as high mortgage rates stabilize and sellers regain confidence. A balanced market, with approximately four months of inventory, will offer opportunities for both buyers and sellers. If mortgage rates decline further, competition may intensify, although a return to pandemic-era low inventory is unlikely.
Key takeaway: A balanced market and stable rates make 2025 a favorable time for appraisals in Nashville's residential and commercial sectors.
Oxford Economics projects U.S. economic growth at 2.6% for 2025,signaling a stronger recovery than previously expected. Government investments in infrastructure and manufacturing have boosted business activity, while wage growth has supported consumer spending. However, fiscal challenges, including inflationary pressures and potential policy changes under the Trump administration, could keep interest rates elevated. These economic trends will play a critical role in Tennessee property valuations, particularly for commercial assets.
Key takeaway: Economic stability and strategic investments may lead to increased demand for professional appraisals across Tennessee.
https://www.costar.com/article/1217337574/changing-tides-lift-the-forecast-for-2025
Knoxville has secured a spot as one of the top 10 housing hot spots in2025, according to the National Association of Realtors (NAR). The city’s strong migration trends, job growth, and rising home prices make it a prime location for real estate investment. New residents are achieving significant wealth accumulation through homeownership, driving demand in the local market. While Nashville didn’t make this year’s list, Knoxville’s spotlight as a top market underscores its appeal for residential and commercial real estate opportunities.
Key takeaway: Knoxville’s thriving housing market offers excellent opportunities for appraisals and property investments.
https://www.nar.realtor/magazine/real-estate-news/10-housing-hot-spots-for-2025pricesnationwide in 2025
Mortgage Rates: Challenges Ahead
Despite Federal Reserve rate cuts, mortgage rates ended 2024 at a high6.85%, with average 30-year fixed rates hovering around 6.72%. Experts predict continued challenges for 2025 as inflationary pressures persist, driven by new fiscal policies. High rates may discourage homeowners with low-rate mortgages from selling, further limiting inventory and keeping home prices elevated. For appraisers, understanding these dynamics is key to providing accurate valuations in today’s market.
Key takeaway: Elevated mortgage rates may restrict inventory, making precise appraisals crucial for buyers and sellers alike.
Nashville’s Retail Market: A Bright Spot
Nashville ranks among the top retail markets in the U.S., driven by robust leasing activity, low availability, and steady rent growth. Tight market conditions and limited construction create a competitive environment for retailers. As Nashville’s population continues to grow, retail properties remain a sound investment for 2025. For commercial appraisers, this market presents excellent opportunities to assist investors navigating tight supply and rising demand.
Key takeaway: Retail appraisals in Nashville are essential as demand outpaces supply in a thriving market.
https://www.costar.com/article/1018899136/nashville-ranked-among-best-overall-retail-markets-in-2024
Partner with Tennessee’s Appraisal Experts
At CRV and Advanced Appraisal TN, we deliver precise and timely residential and commercial property valuations across Tennessee. From Nashvilleto Knoxville and beyond, our certified appraisers provide expert insights toempower your real estate decisions.
Visit our site below to schedule your 2025 property appraisal and unlock your real estate’s full potential.
https://www.advancedappraisaltn.com/
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