Bill Diebenow Properties

Build a proper context and gain a clear perspective. Volatility in the financial markets can cause anxiety.  It's understandable.  Especially with the speed of change brought on by the Fed tackling inflation through the hikes in interest rates. But consider these 2 points in proper context across time. It Remains a Seller's Market Housing has cooled but equity-rich homeowners are still in the driver's seat. Why? Years of tighter mortgage lending standards and sharp home appreciation mean homeowners have less debt and substantial amounts of equity. Because of this, we are unlikely to see the domino effect of an over-leveraged environment and price instability like we experienced at the outset of the Global Financial Crisis over a decade ago. That will keep inventory constrained. Low inventory means buyers’ options will remain limited. Check out the insightful article (click link) penned by the senior economist at Zillow Group. Yes, listings are up and sales have slowed. Bu...

  Participate in RE Beyond Ownership of your Primary Home Have you considered investing in rental property? It may not be as big a leap as you imagine. The moderation of the residential real estate market could create opportunities for you to participate beyond ownership of your primary home. Recounted in the WSJ article linked below, home purchases by investors large and small climbed to record levels during the pandemic, reaching a high of 28% of all single-family home sales in February of 2022, up from 17% during the same month in 2019 (housing data firm CoreLogic).   Assess the Housing Market   The first step would be to assess the long-term direction of the housing market. As I wrote last week, residential real estate trends are best viewed from both national and location-specific perspectives. On a nationwide basis, there is a well-documented home inventory shortage. Match this with demographic pressures, the  catch-up growth in Millennial purchases will drive ...

Shout out to The Money Guy Show produced here in Franklin, TN. Hosts Brian Preston and Bo Hanson ask, "Who’s Right About the Housing Market? (Dave Ramsey vs. Graham Stephan)." Well, it depends! Brian and Bo offer 5 practical steps as we come through this transitional period. Check out the video linked above, it's informative and entertaining. The first step is to assess where home prices are going. They turn to financial expert Dave Ramsey who proclaims that prices aren't going down and to buy now. And then YouTube sensation Graham Stephan, who states that location matters and certain markets are overvalued. Location Matters For Middle TN, both words of advice happen to be correct and positive. Residential real estate trends are best viewed from both national and location-specific perspectives. Brian and Bo reference the long-term trajectory of our Middle TN market. I have included an appreciation graph that maps out the 5.9% historic annual gain. Nobody expects a re...

Faced with dramatic inflation figures, economic forecasters have warned over the past several months that the residential real estate market could cool considerably following years of explosive growth. Yet conversely there are positive national indicators (and growing optimism) that the economy is heading towards a soft landing. Even more so, with "Location, Location, Location" as the age-old real estate mantra, local factors point to our Middle TN region faring well and thriving despite the storm clouds. 3 recent articles and reports highlight Nashville's steady position. Don't miss the quick read  WSJ Mansions/Realtor.com . Click the image for linked video Greater Nashville REALTORS® president Steve Jolly remarked that for our local housing environment, "transitioning to a more balanced market is healthy for Nashville and Middle Tennessee." In the GNR July monthly report ( Click Link ), inventory is up 76% from this time last year. "The supply of ...

A Moderating Housing Market Means More Options... That was the headline from the Realtor.com® National Housing Forecast Update in June 2022. The economists behind the annual study issued a revised forecast to account for the following elements in the housing landscape: Mortgage rates are revised upward to reflect the major shift in monetary policy and financial conditions over the last 6 months; thru the second half of 2022, the 30-yr rate stabilizes at 5.5%. Going forward, home price growth cools , but it has remained hotter for longer than originally anticipated leading to an upwardly revised projection of 6.6% home price growth for 2022 . Home sales slows (in units), modifying original 2022 growth expectations to a decline of 6.7%. While the forecast is a notable step down from 2021, home sales on par with these projections would mean that 2022 sales are the 2nd highest tally since 2007, trailing only 2021. The inventory of homes for sale grows more than originally projected, up 15%...

How to best navigate the housing market? How to benefit from home ownership while taking practical steps to protect yourself? In Franklin TN, two sources of financial authority have provided sound direction in recent weeks. Dave Ramsey stated that despite drama in the economy, home prices are not going to come down . We will see a slowdown only in the rate of appreciation. But home prices will continue to rise. I believe the steady performance of residential real estate through other periods of financial change gives us guidance for the future. That's why I present the 2 graphs. Greater Nashville has witnessed a stunning run of appreciation growth (by 234.7% since 2002) and an annual average of 5.9%. Brian Preston and Bo Hanson on their podcast The Money Guy Show, give sound practical advice in this episode last week, Avoid These Home Buying Mistakes . Your decision matrix should include these 3 elements: • A home purchase needs to be a 5-year commitment ○ Enough time horizon t...

Middle TN Inventory Remains Tight Available Inventory vs Sold 2018 - 2022 With all eyes focused on the rise of interest rates to slow the rate of inflation, how does this affect the residential real estate market and specifically the local Middle TN environment? Last week I pointed to the downturn in home sales and a rise in active inventory. Yet from a historical perspective we are experiencing an ongoing shortage of available properties. There remains a big gap between the small number of homes available for sale and the overwhelming number of buyers looking to make a purchase. Sellers' perspective: Price appreciation is decelerating.  It continues to appreciate, but at a slower pace. “We do still expect home prices to cool, but we’re starting at a higher price point,” says Realtor.com Chief Economist Danielle Hale. Buyers' perspective: More homes to choose from in our local market.  Up 21.7% from prior month, and 18.2% over same time last year.  But keep in mind, Middl...