Home sales fell slightly in Rutherford County last month, but Tennessee as a whole showed overall improvement during the first quarter of 2011.
Closings dipped 3 percent locally from 259 in March to 251 in April, according to data released by the Multiple Listing Service.
But the National Association of Realtors showed sales for the entire state, including single-family and condos, rose 5.7 percent from the fourt quarter to a seasonally adjusted annual rate of 98,800 units, as reported in the Tennessee Housing Market report released by MTSU’s Business and Economic Research Center.
“The housing market showed marginal improvement during the first quarter, with housing construction stable and home sales up from the previous quarter,” the report states.
“What’s missing is a boost from firmer housing prices, and the data for the first quarter offer little evidence that rising prices will soon occur. Other than the housing sector, the rest of the Tennessee economy is improving a little faster, as evidenced by sustained but modest job growth.”
Rutherford County home prices decreased 13 percent to $150,000, as compared to the same time last year – a figure that one real estate expert finds alarming.
“So I researched how the pricing compared to the peak year of 2006, and I feel a little better after finding out that average closed prices in 2006 ranged from $160,000 to $200,000-plus, and the prices didn’t match up with the volume,” said Steven Dotson, president of Red Realty.
“My opinion is the average closed prices don’t determine if prices are going up or down as much as they do determine what price range buyers are buying. April was obviously a better month for starter homes than the upper-end homes in Rutherford County.”
He pointed out several issues continue to hurt the housing market. Mortgage financing is still very tight, as the industry continues to go through changes. And new appraisal regulations are not helping, Dotson said.
Additionally, foreclosures continue to be an issue, as the paperwork is processed.
“The banks are cleaning up their special assets, but there still seems to be an issue o new foreclosures going back to the banks,” he said.
“When you think the dust has settled, we see another large batch of special assets being sold at auction or offered to investors. The volume has improved, but we still have assets that need an end user.”
Dotson added the gap between new homes and existing home prices is still an issue, but is improving.
Local inventory also decreased by about 13 percent – another positive sign. And with 289 pending sales, Dotson said May sales look promising. |
Email
Print
Facebook
StumbleUpon
Google
Yahoo!