Greater Nashville – Sales Slow Regionally in September

Greater Nashville – Sales Slow Regionally in September
Greater Nashville REALTORS® | October 8, 2018

House 1066NASHVILLE, Tenn. (Oct. 8, 2018) – There were 3,258 home closings in the Greater Nashville Region reported for the month of September, according to figures provided by Greater Nashville REALTORS®. This figure represents an 8 percent decrease compared to the 3,544 closings in September 2017.

Data for the third quarter of 2018 showed 11,031 closings, down 2.4 percent from the 11,299 closings during the same period of 2017.

“Sales slowing is typical for this time of year, though this decrease can be reflected by the limited number of entry-level single-family homes entering the market, even with a 32.7 percent rise in inventory for the region since September of last year,” said Greater Nashville REALTORS® President Sher Powers. “The larger inventory offers a great opportunity for buyers and investors to negotiate and avoid multi-offer scenarios while encouraging sellers to be mindful of pricing and features offered.”

“When looking at a breakdown of sales by county for the year through the third quarter, Davidson County shows consistent numbers, with only a half of 1 percent drop-in single-family sales and a gain of 2 percent in condo sales. Dickson, Maury, Robertson and Rutherford counties all showed solid increases in sales,” added Powers.

There were 2,662 sales pending at the end of September, compared with 3,914 pending sales at this time last year. The average number of days on the market for a single-family home was 30 days.

The median residential price for a single-family home during September was $290,000 and for a condominium it was $218,150. This compares with last year’s median residential and condominium prices of $280,000 and $223,450 respectively.

Inventory at the end of September was 12,415, an increase from 9,358 in September 2017.

About Us: Greater Nashville REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors® and subscribe to its strict code of ethics.

The data collected for this release represents nine Middle Tennessee counties: Cheatham, Davidson, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson.

View the September 2018 Market Data Infographic

Source: Greater Nashville REALTORS®, Press Release 100818

Nationally: Existing-Home Sales Reach Slowest Pace in 2 Years

Existing-Home Sales Reach Slowest Pace in 2 Years
National Association of REALTORS® | August 22, 2018

Existing-home sales slowed for the fourth consecutive month in July, reaching their most sluggish pace in more than two years, the National Association of REALTORS® reports. The West was the only major U.S. region to see an increase in sales last month.

1808_NAR-July-EHSTotal existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, fell 0.7 percent month over month to a seasonally adjusted annual rate of 5.34 million in July. Sales are now 1.5 percent lower than a year ago.

Rising home prices may be prompting would-be home buyers to pull away, says NAR Chief Economist Lawrence Yun. “Led by a notable decrease in closings in the Northeast, existing-home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million [units],” Yun says. “Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market.”

Yun notes that a steady climb in home prices over the past year—along with an uptick in mortgage rates this spring—is cooling sales. “This weakening in affordability has put the most pressure on would-be first-time buyers in recent months, who continue to represent only around a third of sales despite a very healthy economy and labor market,” he says. First-time buyers comprised 32 percent of sales in July, down from 33 percent a year ago.

Here’s a closer look at some key indicators from NAR’s July housing report:

  • Home prices: The median existing-home price for all housing types was $296,600, a 4.5 percent increase from a year ago.
  • Inventories: Total housing inventory fell 0.5 percent to 1.92 million existing homes available for sale, unchanged from a year ago. At the current sales pace, unsold inventory is at a 4.3-month supply.
  • Days on the market: Fifty-five percent of homes sold were on the market for less than a month. Properties typically stayed on the market for 27 days, down from 30 days a year ago. “Listings continue to go under contract in under a month, which highlights the feedback from REALTORS® that buyers are swiftly snatching up moderately-priced properties,” Yun says. “Existing supply is still not at a healthy level, and new-home construction is not keeping up to meet demand.”
  • All-cash sales: All-cash transactions compromised 20 percent of sales, up from 19 percent a year ago. Individual investors tend to account for the biggest bulk of cash sales. They purchased 13 percent of homes, unchanged from a year ago.
  • Distressed sales: Foreclosures and short sales accounted for 3 percent of sales, down from 5 percent a year ago. Broken out, 2 percent of sales were foreclosures, and 1 percent were short sales.

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Source: National Association of REALTORS®; REALTOR® Magazine Online 082218

Nationally: Sky-High Home Prices Shatter Ceiling Again

Nationally: Sky-High Home Prices Shatter Ceiling Again
National Association of REALTORS® | July 23, 2018

Ongoing inventory shortages helped to push the median sale price for existing homes to another all-time high in June, the National Association of REALTORS® reports. The median price for all housing types was $276,900, surpassing a previous record set in May. Home prices have surged 5.2 percent since a year ago.

June2018NARsnapshotThe mix of low inventory and high home prices may have had influence on existing-home sales in June, which fell for the third consecutive month. Total existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, declined 0.6 percent to a seasonally adjusted annual rate of 5.38 million. Sales are now 2.2 percent lower than a year ago, with drops in the South and West offsetting gains in the Northeast and Midwest.

“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” says NAR Chief Economist Lawrence Yun. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and, in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

Here’s a closer look at key indicators from NAR’s June housing report:

  • Inventory: Total housing inventory rose 4.3 percent to 1.95 million existing homes available for sale, which is 0.5 percent higher than a year ago. That marks the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace.
  • Days on the market: Fifty-eight percent of homes sold in June were on the market less than a month. Properties, on average, stayed on the market for 26 days, down from 28 days a year ago. “It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels,” Yun says. “Furthermore, it remains to be seen if this modest increase will stick given the fact that the robust economy is bringing more interested buyers into the market and new-home construction is failing to keep up.”
  • First-time buyers: First-time buyers comprised 31 percent of sales, down from 32 percent a year ago.
  • All-cash sales: All-cash transactions made up 22 percent of transactions, up from 18 percent a year ago. Individual investors account for the biggest bulk of cash sales. Investors comprised 13 percent of home sales in June, unchanged from a year ago.
  • Distressed sales: Foreclosures and short sales made up 3 percent of sales, the lowest since NAR began tracking such data in October 2008. Distressed sales are down 4 percent from a year ago. Broken out, 2 percent of sales were foreclosures, and 1 percent were short sales.

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Source: National Association of REALTORS®; REALTOR® Magazine 072318

Nationally: Home Prices Hit a Record High

Nationally: Home Prices Hit a Record High
National Association of REALTORS® | June 20, 2018

Home buyers can expect to pay more for a home this summer. The median existing-home price for all housing types reached an all-time high in May at $264,800, according to the latest housing report released by the National Association of REALTORS®.

Many markets continue to see a flood of buyers but not enough homes for sale, which is prompting prices to rise and also limiting the number of sales. For the second consecutive month, existing-home sales dropped, even in the midst of a typically busy selling season.

NAR-EHS-May18smTotal existing-home sales—which are completed transactions for single-family homes, townhomes, condos, and co-ops—fell 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May, the National Association of REALTORS® reported Wednesday. Sales are now 3 percent lower than a year ago.

“Inventory coming onto the market during this year’s spring buying season was not even close to being enough to satisfy demand,” says Lawrence Yun, NAR’s chief economist. “That is why home prices keep outpacing incomes and listings are going under contract in less than a month—and much faster—in many parts of the country.”

Closings were down in a majority of the country last month and declined on an annual basis in every major region, Yun says. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market,” Yun says.

May’s Housing Stats

Here’s a closer look at some of the key indicators of the housing market from NAR’s latest housing report:

  • Home prices: The median existing-home price for all housing types was $264,800 in May, an all-time high. Home prices were up 4.9 percent from a year ago.
  • Inventory: Total housing inventory at the end of May rose 2.8 percent to 1.85 million existing homes available for sale. Still, the number of homes for sale is 6.1 percent lower than a year ago. Unsold inventory is at a 4.1-month supply at the current sales pace.
  • Days on the market: Properties typically stayed on the market for 26 days in May, down from 27 days a year ago. Fifty-eight percent of homes sold in May were on the market for less than a month.
    First-time home buyers: This segment comprised 31 percent of sales in May, down from 33 percent a year ago.
  • All-cash sales: All-cash sales accounted for 21 percent of transactions in May, down from 22 percent a year ago. Individual investors tend to make up the bulk of cash sales. They purchased 15 percent of homes in May, down from 16 percent a year ago.
  • Distressed sales: Foreclosures and short sales made up 3 percent of sales in May, the lowest reading since NAR began tracking such data in 2008. Distressed sales are down from 5 percent a year ago. In May, 2 percent of sales were foreclosures and 1 percent were short sales.

Source: National Association of REALTORS®; REALTOR® Mag News, 062018

Nationally: Sales Struggle to Overcome Housing Shortages

Nationally: Sales Struggle to Overcome Housing Shortages
National Association of REALTORS®
article by Daily Real Estate News | May 24, 2018

Blame it on the low inventory of available property: Total existing-home sales failed to gain traction in April, according to the National Association of REALTORS® latest housing report, released Thursday.

Total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—decreased 2.5 percent to a seasonally adjusted annual rate of 5.46 million in April. Sales are now 1.4 percent below a year ago. This also marks the second consecutive month sales have fallen on an annual basis.

Regional Breakdown  The following is a breakdown of existing-home sales across the country in April:

  • Northeast: existing-home sales dropped 4.4 percent to an annual rate of 650,000, and are now 11 percent below a year ago. Median price: $257,200—2.8 percent higher than a year ago.
  • Midwest: existing-home sales were unchanged month-over-month at an annual rate of 1.29 million in April, and are 3 percent below a year ago. Median price: $202,100—up 4.6 percent from a year ago.
  • South: existing-home sales dropped 2.9 percent to an annual rate of 2.33 million in April, but are still 2.2 percent above a year ago. Median price: $227,600—up 3.9 percent from a year ago.
  • West: existing-home sales dropped 3.3 percent to an annual rate of 1.19 million in April and are 0.8 percent below a year ago. Median price: $382,100—up 6.2 percent from a year ago.

“The root cause of the underperforming sales activity in much of the country so far this year continues to be the utter lack of available listings on the market to meet the strong demand for buying a home,” says Lawrence Yun, NAR’s chief economist. “REALTORS® say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates. However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford.”

For the inventory that is out there, homes are selling fast. Strong buyer demand mixed with low inventory levels are prompting homes to sell at a record pace.

Here’s a closer look at some of the key indicators from NAR’s latest housing report:

Home prices: The median existing-home price for all housing types in April was $257,900, up 5.3 percent from a year ago.

Inventories: Total housing inventory at the end of April rose 9.8 percent to 1.80 million existing homes available for sale. Inventories are still 6.3 percent lower than a year ago. Unsold inventory is at a four-month supply at the current sales pace.

Days on the market: Properties stayed on the market an average of 26 days in April, down from 29 days a year ago. Fifty-seven percent of homes sold in April were on the market for less than a month.

“What is available for sale is going under contract at a rapid price,” Yun says. “Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.”

All-cash sales: All-cash transactions comprised 21 percent of sales in April, unchanged from a year ago. Individual investors account for the biggest bulk of cash sales. Investors purchased 15 percent of homes in April, also unchanged from a year ago.

Distressed sales: Foreclosures and short sales made up just 3.5 percent of sales in April, the lowest since NAR began tracking such data in October 2008. That is also down from 5 percent a year ago. Broken out, 3 percent of April sales were foreclosures and 0.5 percent were short sales.

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Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 052418

Nationally: Home Sales Overcome Inventory, Price Woes

Nationally: Home Sales Overcome Inventory, Price Woes
National Association of REALTORS®
article by Daily Real Estate News | April 23, 2018

House 1042Inventory shortages and pressing affordability issues didn’t suppress home sales activity in March. Total sales of existing homes, including single-family homes, townhomes, condos, and co-ops, increased 1.1 percent last month to a seasonally adjusted annual rate of 5.6 million, according to the National Association of REALTORS®. However, home sales are still 1.2 percent below a year ago.

“Robust gains last month in the Northeast and Midwest—a reversal from the weather-impacted declines seen in February—helped overall sales activity rise to its strongest pace since last November,” says Lawrence Yun, NAR’s chief economist. “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels because supply is woefully low, and home prices keep climbing above what some would-be buyers can afford.”

Here’s a closer look at some key indicators from NAR’s latest existing-home sales report for March:

  • Home prices: The median price for existing homes of all types was $250,400, up 5.8 percent from a year ago. “Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets, especially those out West,” Yun says.
  • Inventories: Total housing inventory rose 5.7 percent to 1.67 million existing homes available for sale, but that’s still 7.2 percent lower than a year ago. Inventories have fallen year over year for 34 consecutive months. At the current sales pace, unsold inventory is at a 3.6-month supply.
  • All-cash sales: Cash transactions comprised 20 percent of sales, down from 23 percent a year ago. Individual investors tend to account for the bulk of all-cash sales. They purchased 15 percent of homes on the market last month, down from 18 percent a year ago.
  • Distressed sales: Foreclosures and short sales made up 4 percent of home sales. Broken out, 3 percent of sales were foreclosures and 1 percent were short sales.
  • Days on the market: Fifty percent of homes that sold in March were on the market for less than a month. Properties stayed on the market for an average of 30 days, down from 34 days a year ago.

“REALTORS® throughout the country are seeing the seasonal ramp-up in buyer demand this spring—but without the commensurate increase in new listings coming onto the market,” Yun says. “As a result, competition is swift, and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 042318