End of Year Home Sales Offer Hope

Home sales increased and reached their highest in almost a year this past December. The increase in sales compliments an improved housing market. Analysts have said that the sales will remain low for a few more years until it goes back to a good level. There were a three straight months of an increase in home sales last year, and signs point to that continuing into this year. Prices are low, and mortgage rates are even lower. Home builders are hopeful, because more families will have an opportunity to buy a home this year. Home remodeling even increased in the third quarter of last year.

It is certainly true that home sales are low overall, compared to 5 years ago, and will continue to be low for some time. Still, sales of previously owned houses rose to 5% in December – its highest level since January 2011. Corresponding to this great news is that the job market also has improved. It goes without saying that this is vital for a housing market rebound. In December, the unemployment rate fell to its lowest in almost three years. Layoffs have started going down, while hiring is on the rise. This, in turn, is helping consumer confidence. Home sales may continue to rise as everything is falling into place. The average sales price of previously owned houses went up from November to December by 0.3 percent.

Sales across the U.S. are increasing, and it was an increase of 10 percent in the Northeast, 8.3% in the Midwest, and 2.9% and 2.6% in South and West respectively. The number of unsold homes is going down, and they can be sold quickly based on last month’s selling pace. Home sales are increasing at a time when other economic standards are also going up. This signals an improving health to our economy. Mortgage rates are at their lowest, and home construction is increasing. The housing market needs a few more years to recover, but it is looking good right now. Here’s to hoping for the best.

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.

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!

Weather Affects Real Estate

After a very good December in regard to home sales there was an expectation that January and February would follow suit. However, no one expected the type of weather that paralyzed much of the nation. When people cannot move around freely, home sales normally fall. This is just the way it is. Fortunately for the Middle Tennessee Area, the weather wasn’t near as distracting as it was in other parts of the country. This is one reason that real estate is always considered local.

For those that are selling, this is a great time to have your house on the market as the last of the first time homebuyers look to get a house under contract before the end of April. At the same time, it is a good time to buy because of the tax credits for most buyers as well as interest rates that are still well below normal. There are good buys in almost every price range but it won’t always be that way. If you are ready, start looking. You will be glad you did.

Home Sales Start with a Bang in 2010

Home sales were up 6% in January 2010 over the same period in 2009 with 1,033 home closings. Condominium sales were also up the first month of 2010 from last year. If you were a lucky buyer, you most likely got a better deal this year than you would have last year since the average median price in January was $159,000, down from $165,000 in January 2009. The condo medium price was $154,550; also down from $165,000 last year at this time. Another difference is the inventory numbers. They were up last year and are actually down over 275 and at the end of January there were 22,233 units on the market.

This is all very good news and it looks like the first time home buyer’s credit has worked during the past year and continues to work now. It’s really a very good time to purchase a home as prices are down, interest rates continue to hold at near historic lows and, as long as you have a house under contract by the end of April, there are government tax credits available to you whether you are a first time, a move up or move down buyer in the market. We don’t expect this “perfect storm” for buyers to last much longer so the time is now.

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.