Residents throughout Davidson and Rutherford counties – and everywhere in between – are still buying homes, newly released data shows.
There were 2,047 home closings reported for the month of August, according to figures provided by the Greater Nashville Association of Realtors. This figure represents a 28.4 percent increase from the 1,594 closings reported for the same time last year.
“There was an increase in closings in all categories during the month of August – a continued sign the market is stable and showing some encouraging signs,” GNAR President Alice Walker said. “For the second consecutive month, pending sales have increased, condo prices are up and single-family home prices are consistent.”
She added that the comparison of closings to last year continues to support a distorted view of the market.
“In the first half of this year, we were comparing to months where the tax credit was in place in 2010,” Walker explained. “That drew many buyers into the market sooner than they planned, but left fewer buyers in the market once the tax credit expired. So what we’re really seeing now is a stable market that looks stronger when compared to the weaker market that followed the expiration of the tax credit last year.”
Similar optimism could be heard in Rutherford County, where home sales increased 22 percent when compared to August 2010, newly released data shows.
“I think these numbers show the market is improving and is stabilizing after last year’s up/downs caused by the tax credit,” Red Realty President Steven Dotson said.
He added that there was virtually no change in closings from July to August, as totals decreased only from 290 to 289 respectively.
An additional 308 sales pended last month, which should be a good indication of closings for September.
“It’s great to see positive signs and improvements being made in our markets despite the negative national news,” Dotson stated in the Red Report. “I feel confident our local communities will continue to create jobs that will be the answer to seeing continued improvements in the real estate market.”
Not all news can be good, as evidenced by the increase in foreclosure rates released last week.
Foreclosure rates in the Nashville-Davidson – Murfreesboro – Franklin area has increased for the month of June over the same period last year, according to CoreLogic, a leading provider of consumer, financial and property information, analytics and services to businesses and the government.
The rate of foreclosures among outstanding mortgage loans is 1.80 percent for the month of June 2011, an increase of .53 percentage points compared to June 2010, when the rate was 1.27 percent.
However, this number is lower than the national foreclosure rate of 3.46 percent in June, representing a 1.66 percentage point difference.
Additionally, the mortgage delinquency rate for the same metropolitan area has decreased. According to data provided by CoreLogic, 5.25 percent of mortgage loans were 90 days or more delinquent, compared to 5.43 percent for the same period last year. This figure measures the percentage of loans that are more than 90 days delinquent, including those in foreclosure and real estate owned.
Home prices have also decreased slightly, with the median residential price for a single-family home during August was $171,900 for the Greater Nashville area, reported GNAR. This compares with last year’s median residential prices of $174,500.
Inventory at the end of August was 21,362 for the same area, down slightly from 24,119 in August 2010.
The majority of this inventory is comprised of residential homes, which totaled 15,008 by the end of August, data shows.
“Inventory is slightly lower than last year, but there continues to be a good supply of properties throughout Middle Tennessee,” GNAR President Alice Walker explained. “With closings up and inventory lower compared to August of last year, there is currently approximately a 10-month supply available. The market is much more in balance than it was at this time last year, when the supply was more than 15 months.”
She added, “There are still plenty of homes available in a variety of price ranges throughout Greater Nashville, and conditions remain favorable for those interested in purchasing a home.” MP |
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