The real estate market is full of turbulence, causing those buying and selling homes stress. While the real estate market is not quite performing optimally, there is still plenty of hope for those entering it. Cities such as Atlanta, Georgia and Houston, Texas are experiencing lulls in the real estate market. However, Nashville (and surrounding areas) is still experiencing high rates of relocation, which is serving to boost real estate sales.
The cost of living is moderately low in Tennessee, further boosting real estate sales. While new construction is slowing, we are still not seeing a significant drop in the value of many properties in Tennessee. Unemployment is a significant issue in the state of Tennessee, but our statewide rates are improving compared to other states. Similarly, condominium sales in Nashville are gaining momentum, and have been since 2009. While many real estate trends are speculative at best, it is clear that Tennessee has a right to be hopeful for the future of its real estate market. Overall, the current real estate trends in Nashville, and the rest of Tennessee, give reason to be optimistic.
This last month more homes where bought than expected. While there are those that will say that’s not saying much, it does prove that people are still buying homes despite the end of the tax credit that was designed to get the housing market over a hump. Is the housing market booming like it was just a few years ago? We all know the answer to that is no. However, just like any other financial market, the housing market traditionally goes through much needed corrections from time to time.
Most experts believe there are some additional corrections that need to take place. But one has to remember that people have been and will continue to move from place to place as their lives change and families grow. This is the way of the world. There will always be a need for houses and the ebb and flow of the market will always be affected by the demand. Good, solid homes are still selling and good, solid people are buying and that’s the way it will always be.
In reading over many recent publications it looks like the interest rates will be at their lowest during the first quarter of 2010. The Federal Reserve along with additional government programs that have helped keep interest rates low will be phased out over the next three months in hope that the private markets will come in and take over where they left off and this is what needs to happen to insure growth in the economy.
However, it is expected to be a bit bumpy since no one knows how much or exactly when the private markets will jump in and take up the slack. That means that interest rates may be (some say will be) rising throughout the remainder of 2010. Of course, since there are so many unknowns, no one can say for sure what will happen exactly. A few predict that the government will have to get involved again before it can totally let the markets go and we will all have to wait and see as the year progresses. The one thing everyone seems to agree on it that for those in the market to purchase a home; interest rates will be at their best in the next few months.
Open houses are a very important part of the selling process. A great house can languish on the market if it is not prepared properly for each open house. I have come up with some suggestions for preparing your home for an open house.
- Clean/De-Clutter.
- Open shades and window blinds.
- Turn on all lights.
- Turn TV to classical music station.
- Turn down answering machine.
- Leave the house; take pets with you or put them in a crate in the garage.
- Put out fresh flowers on dining room table.
- Bake cookies just before you leave the house.
- Put out small bottles of water with a note to invite visitors to help themselves. (You could also leave them some cookies.)
Follow these simple steps, and you’ll provide a warm, inviting atmosphere for your potential buyers.
Wow! That’s all I have to say about the reports I have heard this week about the dismal home sales in February. If all you listen to is the news you would think the market is tanking! What you didn’t hear is how many more homes sold in February over January. That’s right; there was a 40% increase in sales of homes from January 09 to February 09. Why didn’t the news report that? My guess is that it just doesn’t make the same amount of impact or cause people to fear like the dismal report does. So let’s look at the numbers.
Home sales in 2008 really didn’t fall off until late summer or early fall. We had the increase in foreclosures but not the decrease in sales. So to compare last years market with this year’s market doesn’t tell you if home sales are currently moving in a positive or negative direction; it simply reinforces what we all know, which is the market overall is down. However, looking at the previous month (January) and comparing it with February gives us the current climate and direction of the housing market here in Nashville Tennessee. Once we do that we see that we are in fact going in the right direction.
Though statistics are important, we all need to look at who is delivering the message and if they have a motive. What’s in it for them? Is this information presented in such a way that it is trying to get me to have an emotional response? Is it possible they aren’t telling me everything? Once we do this we realize there is often more than meets the eye, or ears! After all, is it not the same people that are delivering the gloom and doom of the day that were telling us it was all good about this time last year? Hmmm.. it is good to be a critical thinker these days!
It looks as if the real estate market was down around 30 percent for the 2008 year from 2007. As bad as that sounds, it was not near the loss that has been reported in other states such as California, Florida, Nevada, Arizona and Georgia. In fact, Atlanta has been hit much harder than the Nashville and surrounding areas.
In addressing the Nashville market, Greater Nashville Area Realtor President Mandy Wachtler has said, “The real estate market in Greater Nashville is clearly feeling the effects of national economic trends, It has taken longer for the trends to have their impact here, and the impact is still less than many other locations. And, we anticipate that we will be among the places where positive trends are seen earlier than other locations, as well. Even with the current market conditions we have, there is still no better place to be than right here.”
So with that, there are many that believe with everything Nashville, Tennessee offers, this is definitely the place to be!
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 1/3rd, then it makes perfect since that we are down. The good news is that sales are above the 2/3rd’s mark, which again reveals that we still have a thriving real estate market here in and around Nashville, Tennessee.
