Tennessee's housing report data for the last quarter of 2020 “generally show positive growth in Tennessee's economy” with the housing market seeing “strong upswings” in single-family permits and tax collections, increased closings and home prices and lower inventories.
The MTSU Business and Economic Research Center's statewide report for the fourth quarter tracked positive trends among key economic indicators, noted report author Murat Arik, director of the BERC at Middle Tennessee State University.
In home sales, closings increased for both the quarter and year in all three grand regions: Memphis had the most substantial increase over the quarter of 7.2%. Nashville and Knoxville followed, with quarterly increases of 5.8% and 5.3%, respectively.
The highest jump year-over-year was seen in Knoxville (+18.9%), followed by Nashville (+17%) and Memphis (+13.3%).
Home prices statewide increased by 7% year-over-year, while home prices in the U.S. increased by 6%. All Metropolitan Statistical Areas (MSAs) in Tennessee also had growth in home prices year-over-year, with the Cleveland MSA highest (+9%).
While growth rate in the Clarksville MSA slightly dipped 0.3 percentage points from the previous quarter, the area still maintained one of the highest rates of growth (+8.6%). Home prices increased in all other areas over the quarter, except for Kingsport-Bristol MSA, which saw a drop of 1.06 percentage points over the quarter but still an annual increase of 4.6%.
BERC's report is funded by Tennessee Housing Development Agency, or THDA. The quarterly report offers an overview of the state's economy as it relates to the housing market and includes data on employment, housing construction, rental vacancy rates, real estate transactions and mortgages, home sales and prices, delinquencies and foreclosures.