|Home sales in Rutherford County continued an upward climb in May, newly released data shows.
While the month-over-month increase is modest, year-over-year sales surged 29 percent, according to Steven Dotson, president of Rutherford County-based Red Realty, in his monthly Red Report.
Nearby, Williamson, Davidson and Wilson counties all experienced similar growth, with 23, 36 and 14 percent increases, respectively.
He pointed out that May’s sales in each of the four counties were higher than any month in 2011.
“We are in new/improved territory. I was waiting for the seasonal drop off after spring to show up, but it looks like the summer will continue strong with pendings continuing to increase,” Dotson continued. “Closings up, inventories down, and pendings higher than the same time last year tells us that the improvements may be here to stay. Prices are also starting to show some improvement.”
Additionally, homes were sold in May at a slightly higher price when compared to the same time last year.
“Prices are starting to improve a little from last year and will continue to improve more as the supply continues to drop,” Dotson explained. “I think the ‘good/more desirable’ inventory is even lower than the numbers show. Good listings are getting multiple offers and selling much quicker.”
Pending sales in Rutherford and Wilson counties were slightly down from April, while those in Williamson and Davidson increased some 7 percent, the data shows.
“I would assume that we’ll see some seasonal adjustments in the next coming months, but thankfully the market has proven me wrong so far, so let’s just hope for a continued upward market as the market continues to recover,” Dotson concluded.
Home sales throughout Middle Tennessee experienced similar improvement. A total of 2,500 home closings were reported for the month of May, according to figures provided by the Greater Nashville Association of Realtors, which includes residential, condominium, multi-family and farms/lands/lots. This represents a 28.5 percent increase from the 1,945 closings reported for May 2011.
Year-to-date closings are 9,541. That total is up 25.5 percent from the 7,600 closings reported through the same period last year, according to the report.
“With increases in each category, and significant growth in both residential and condominium sales, this is the best month for closings in the region since May of 2008 - four years ago,” said GNAR President Kendra Cooke. “Median prices have increased since last year and more than 2,600 sales are currently pending. Combined, these numbers show that the Greater Nashville real estate market is continuing to stabilize, and even strengthen.”
There were 2,671 sales pending at the end of the month, compared with 2,023 pending sales at this time last year. The average number of days on the market for a single-family home was 84 days.
Additionally, the median residential price in May was $179,000 for a single-family home and $160,000 for a condominium. This compares with last year’s median residential and condominium prices $165,900 and $143,000, respectively.
Inventory at the end of May was 19,503, down from the 22,514 reported in May of 2011.
“Based on the increased level of closings, there is currently an eight-month supply of overall inventory and a just a six-month supply of residential inventory,” Cooke explained. “For potential sellers considering putting their home on the market, preparation is key. ‘Curb appeal’ is important and addressing any internal or external issue prior to putting your home on the market will help make it attractive to potential buyers. Buyers are very discerning and opportunities for sales can be missed if sellers do not prepare their properties well.”
Home sales in Rutherford and surrounding counties have been showing signs of improvements since 2010. Sales in Davidson, Rutherford, Williamson and Rutherford counties peaked at 24,287 in 2006 before dropping dramatically to 20,333 in 2007 and hitting bottom at 12,787 in 2010, according to a 10-year data report provided by Red Realty.
Since then, however, sales have slowly, but surely crept upward, and 2012 is projected to garner 15,600 sales based on a 20 percent increase in the year-to-date comparison.