Home Sales In Nashville Stay Consistent Through June 2011

The housing market is still sluggish throughout most of the country, and sales in Nashville remain consistent. In a press release, the Greater Nashville Association of Realtors (GNAR) states that it is difficult to make accurate comparisons to last years sales numbers. This is due mainly to the fact that last year had a First Time Homebuyers Tax Credit and this year has not.

Much buyer hesitation likely comes from government talks regarding adjustments to the Mortgage Interest Deduction, as well as the possible institution of a mortgage down payment requirement of up to 20%. Regardless, it is important to remember that these are talks only, and are not law. GNAR president Alice Walker says, “Hopefully those leaders will end those considerations and do more to find ways to strengthen and enhance the housing and real estate market.”

For a comparison of property sales between June 2010 and June 2011, see the chart below. For a more detailed analysis, see the GNAR’s July 7 press release.

Real Estate Report for January is Optimistic

According to the Greater Nashville Association of REALTORS, the housing market in Middle Tennessee is on the up and up. In fact, in January alone there were 1,101 home closings, which is an increase of roughly 6.6%. This is great news for those looking to purchase a home, as mortgage rates begin to decrease.

Of the 1,101 house closings in the month of January, 918 of those were residential in nature, and 117 were closings on condominium spaces. At the end of January, there were still 1,270 closings pending, which were not able to affect this already optimistic statistic. This statistic is only expected to improve as the weather warms up, and people begin to put more houses on the market in Middle Tennessee. As we’ve discussed, spring is the time to put your house on the market, before the sweltering heat of summer begins. If real estate closing figures are this positive during the coldest month of the year, then the figures for spring should be equally optimistic. This is great news for home buyers, as mortgage rates traditionally begin to decrease when more homes begin to sell.

Home Sales Up for the 8th Month in a Row

According to The Greater Nashville Association of REALTORS®, there were 2,270 home closings reported for the month of May.  This is a 27.3% increase from closings reported for May 2009. This brings the year-to-date closings to 8,607, which is up 20.4% from same period last year.

The home buyer credits have been a great boost to home sales and we will see closings through the end of June that still qualify for the tax credit. However, we are also seeing buyers take advantage of the historically low rates that are still out in the market today. That’s not to say that the market will not feel the end of the tax credit because we expect it to soften a bit. But people always have to move for various reasons and Middle Tennessee is thriving more than many cites and areas in the country so the housing market is expected to remain strong.

Inventory of houses at the end of May was 24,007, down a little bit from the 24,598 reported in May of 2009 but still is a good supply of homes to choose from. With a good number of homes to choose from and historical low interest rates it remains a great time to purchase a home!

Home Sales Increase for Sixth Consecutive Month in Nashville Area

It’s official, according to the Greater Nashville Association of REALTORS®, March is the sixth consecutive month home sales have risen in the Nashville area. March alone increased over 21% with the first quarter up over 11% from this time last year. Not only is this good news but that fact that the medium residential priced home has remained steady as well is great news for our area. It is believed that most sales are a result of the tax credit that actually ends the end of June but the contract has to be written by the end of April. This should lead sale to continue upward through the rest of spring and beginning of summer.

Right now the median residential price for a single-family home for March 2010 was $159,250 and for a condominium $137,450.  This compares with last year’s median residential and condominium prices of $158,000 and $155,704, respectively. You can see while single-family home prices have increased slightly, condo prices have fallen a bit. Since inventory is still high and interest rates low, it is still a great time to purchase a home. If you can get a house under contract by the end of April and meet the criteria for the tax credit, there is still time to qualify.

November Home Sales Are Up In Middle Tennessee

The word has arrived from the GNAR (Great Nashville Association of Realtors) that Greater Nashville home sales are up more than 50% in November.  There were 1,973 home closings in the area which represented a 58.7% increase over the number of closings in November 2008. The median residential price in November 2009 was $158,500 and for condos it was $144,400. Compare that to November 2008 which had $165,500 and $150,000 respectively. Inventory is also down compared to the same period one year ago.

Here is a comparison of sales data for the month of November:

Though things are improving and no one can say they aren’t, we do need to keep prospective. During 2009 there has been a very nice tax credit given to first time home buyers and the amount of foreclosures has had a direct reflection on keeping home prices low. These two things coupled with interest rates that have continued to be some of the lowest in history has had a very positive affect on housing. What we don’t know is how these things changing in 2010 will affect housing in our market.

It is the opinion of many economists that jobs will have more to do with the housing recovery than anything else. However, if you are employed and are ready to purchase a house as a first time home buyer or not, there are still tax credits available. Call me and I can give you the particulars and see if this is a good time for you to be purchasing a home.

What’s Happening in Downtown Nashville?

Despite some of the recent press about Downtown Nashville condo development, the fact is, Downtown is seeing continued growth.  While the suburbs somewhat mirror the slow down in the overall housing market, recent data indicates that there have actually been more sales of condos downtown in the first two quarters of 2008 than the entire 2007 year.   It is also expected that over 900 additional units will close between now and the end of the year.

This is indicative of the trend that had been predicted in recent years of people moving back to urban centers from the suburbs.  Some think this was exacerbated by the current economic uncertainties including food and gas prices.  Whatever the reason, this trend is gaining strength as there is more and more demand to come back to the cities and live in metro areas.

For those who are wondering about condo prices, information released by the Greater Nashville Association of Realtors June data for 2008 shows that the median price of condominiums surpassed the medium price of single-family homes in Nashville.  This is the first time this has ever happened in our area.  The average condo sold for $185,500, which is a 19% increase over the previous year.

April Stats – Sales Decrease; Prices Rise

Here is a brief and accurate account of what happened in the month of April in the real estate market in Nashville according to the Greater Nashville Association of Realtors®.

There was a decrease in sales (closed transactions) of 28.5% from April of 2007.

Year to date numbers for 2008 reflect a decrease in sales of 28% compared to 2007 numbers for the same timeframe.

Though sales were down, the median price for a home in the area has risen to $180,000 for April, which is slightly higher than it was compared to April 2007 when the median price for a house was $177,900.

The median price for condos for the same period was $162,000 April 2008 compared to $163,900 for April 2007, which is a slight decrease.

Inventory for April 2008 was 24,670 compared to April 2007, which were 20,129.

A couple of observations:

The year to date numbers is very close to Nashville’s 2001 numbers and reflects a strong real estate market during what has proven to be a very difficult market in other areas around the nation.

Also, if you look at what top lenders have said about the demise of “sub-prime” lending lowering the buyer pool by about 1/3^rd, then it makes perfect since that we are down.  The good news is that sales are above the 2/3^rd’s mark, which again reveals that we still have a thriving real estate market here in and around Nashville, Tennessee.