August 27, 2013

Home Sales up for 24 Consecutive Months, Vibrant Economy a Factor

Franklin TN Real Estate, Brentwood Tennessee Real Estate, Market Trends

Franklin TN Real Estate, Brentwood Tennessee Real Estate, Market TrendsNASHVILLE, Tenn. (Aug. 8, 2013) – There were 3,151 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents a 22.4 percent increase from the 2,574 closings reported for the same period last year.

Year-to-date closings for the Greater Nashville area are 18,010. That is an increase of 23.6 percent from the 14,568 closings reported through July 2012.

“The 22 percent increase in home sales during July is very good news. The fact that it is a continuation of the upward trend of the last 23 months is convincing evidence that this region is experiencing sustainable growth in the real estate market,” said GNAR President Price Lechleiter. “The continuation of excellent visibility and positive economic news for Greater Nashville is attracting more people here, and seems to be building confidence in those already here, so there is more willingness to commit to the purchase of a home.”

“While we are experiencing a healthy market now, there are key legislative and regulatory issues on the table. The future of FHA, Fannie Mae and Freddie Mac, as well as the mortgage interest deduction is the focus of much discussion currently. President Obama’s comments on housing earlier this week – along with those of Senator Corker and other key elected officials – indicate that the housing market is extremely important at that national level. Realtors will be working to make sure that no quick decisions with negative unintended consequences are made. It is certainly our intent to help make sure people have meaningful access to home ownership, and that what represents nearly one-fifth of the national economy is protected from decisions that weaken it in any way.”

A comparison of sales by category for July is:

July 2012 July 2013
CLOSINGS 2,574 3,151
Residential 2,132 2,635
Condominium 295 357
Multi-Family 26 23
Farms/Land/Lot 121 136

There were 3,083 sales pending at the end of July, compared with 2,648 pending sales at this time last year. The average number of days on the market for a single-family home was 70 days.

The median residential price for a single-family home during July was $204,000 and for a condominium it was $154,500. This compares with last year’s median residential and condominium prices of $181,250 and $156,220, respectively.

Inventory at the end of July was 16,651, down from 18,868 in July 2012. The current inventory of properties by category, compared to last year, is:

July 2012 July 2013
INVENTORY 18,868 16,651
Residential 11,728 10,434
Condominium 1,516 1,286
Multi-Family 281 173
Farms/Land/Lot 5,343 4,758

“The number of days homes are on the market has decreased to just 70, the lowest time on the market since October 2007,” added Lechleiter. “Inventory is very low, with only about a 5-month supply overall and slightly less than 4-month supply for single family homes. It is reasonable to expect inventory to grow now that prices have increased. And other market factors are having an impact, such as the recent increase in interest rates, so sellers know that buyers are becoming more active.”

Leave a Reply