Tennessee real estate may be in better shape than many other places in the United States, said several speakers at the Middle Tennessee State University Economic Outlook Conference on September 25, 2009, as reported by John Carney in the Shelbyville Times-Gazette. Analysts believe that “Tennessee may recover more heartily than some other parts of the nation due to its educational institutions, a diverse and balanced economy, and new economic developments such as the Volkswagen plant in Chattanooga and the Hemlock Semiconductor plant in Clarksville.” With an economy that continues to labor on and a workforce that continues to be employed, most people agree that Tennessee is well-suited for an upswing in the economy and the ensuing revival of the housing markets across the United States.
Unfortunately, two recently-released foreclosure reports show that real estate in Tennessee is experienced an increase in foreclosure rates, although the rate increases are beginning to slow locally, reported the Memphis Business Journal on October 15, 2009. The article’s primary source, RealtyTrac, claimed that “the state’s homeowners received a total of 10,888 foreclosure notices, or one in every 250 households receiving a filing.” Interestingly, Tennessee’s foreclosure rate in the quarter fell about 9.1 percent from third quarter 2008. It increased about 3.9 percent from the previous quarter. While these numbers might be frightening for some, they represent improvement from previous measurements and are above and beyond the national averages which goes as comfort for many homeowners who are offering up Tennessee homes for sale.
A post on September 22, 2009 by Don Fenley of the Kingsport Times News claimed that about 36,000 people in the state of Tennessee had filed for the federally-sponsored home purchase credit by the middle of the month. He says that “there’s no doubt the incentive has breathed some life into the struggling local, state and national housing market as did the cash for clunkers incentive for the automotive industry.” However, he warns that housing is recovering and thus there is no longer a need to offer the breaks and that because such credits are a form of government spending, they have helped to create the $1.5 trillion deficit this year.
