@Klint Ruud If the last few months are any indication, I would say, looks like it. I am an agent in town who works with investors exclusively on rehab/flips, buy/holds etc.. My firm is currently seeing roughly 77% of our clients hitting an average of 12k above our estimated ARV. Bidding wars are not just in the news, I am watching it happen everyday. My working theory is everyone got tiered of looking at the same walls during the lock down phase, that they all collectively decided "If we are going to be stuck inside looking at walls, lets change the walls"! The jury is still out on the accuracy of that theory, but the practical observation, seems to be spot on!
I'm not complaining, and neither are my investors. We are all just happily riding the wave!
@Klint Ruud If the last few months are any indication, I would say, looks like it. I am an agent in town who works with investors exclusively on rehab/flips, buy/holds etc.. My firm is currently seeing roughly 77% of our clients hitting an average of 12k above our estimated ARV. Bidding wars are not just in the news, I am watching it happen everyday. My working theory is everyone got tiered of looking at the same walls during the lock down phase, that they all collectively decided "If we are going to be stuck inside looking at walls, lets change the walls"! The jury is still out on the accuracy of that theory, but the practical observation, seems to be spot on!
I'm not complaining, and neither are my investors. We are all just happily riding the wave!
I'd agree with Angela in the short term. As a builder, we are pre-selling some of our builds (some not even listed) and sometimes multiple offers. In the long term I'd say it is too soon to speculate. I think round two of the Cares Act, upcoming election and the fall slowdown of home buying will give us more info on what 2021 and beyond looks like. For now, low interest rates, current inventory and no state income tax are positive factors. I also tend to believe that the healthcare and tech companies in Nashville are key factors to our vibrant economy. We are seeing multiple folks move here from California and Chicago.
On a side note, Chattanooga (where we have a property mangement company) is doing great also. We are renting out $700-$1200 units consistently and 95%+ of tenants still paying rent.
@Josh Braun I have multiple developers I work with for land deals as well as tear downs for new builds. And I am hearing the same from them. It's weird if you think about it. We saw a slight dip around April while people were still trying to get their bearings, but we are currently seeing better numbers than pre-pandemic stats... Same with Rent. Additionally, the out of state investors I work with are seeing the same in multiple states. It's almost like the REI community looked at current events and the doom and gloomers, projecting a repeat of 2008 and said, "Hold My Beer"... ;)