Greater Nashville Housing Market Remains Strong; Market Strength Brings Challenges

Greater Nashville Housing Market Remains Strong
Market Strength Brings Challenges
by Kenneth Bargers, REALTOR® | January 27, 2018

Photo by Hatcher & FellThe Greater Nashville area continues to be one of the hottest real estate markets in the United States. A continued strong economy pushed momentum in 2016, the values and home sales continued to increase throughout 2017 and ended the second half of 2017 as a consistent monthly housing market in the nation. Several industry and data tracking entities named Nashville among their Top 20 housing markets for 2017.

Due to the reputation of the “It City”, relocation is heavy to Middle Tennessee and with this popularity comes shortages in housing inventory. Existing-home and new construction inventory struggle to keep pace with the number of buyers. Housing inventory remained a concern throughout 2017 and forecasted to be a challenge for 2018. Corporate and company expansion of new facilities are in place for 2018 bringing employment additions to Middle Tennessee – adding additional pressure for housing availability to the already strong Greater Nashville destination. Addressing the housing inventory will be one of 2018’s priorities with the current popularity of Greater Nashville and Partnership 2020’s continued aggressive pursuit of future business placements and attractions.

Demand for housing also adds as an influence factor on the value of home prices. Increased home values in 2017 will continue in 2018 per current indicators. With increased home values also comes the challenge of home ownership affordability within segments of our population. Of course, the success of national economic guidelines and policies will contribute as a factor in the local up or downturn of our housing market.

Overall, a strong economy, attractive mortgage rates, appeal of Middle Tennessee, along with the desire of home ownership as part of the American Dream should bring another impressive year of housing market production.

www.bargers-solutions.com

2017 Best Year on Record for Middle Tennessee Housing

2017 Best Year on Record for Middle Tennessee Housing
Greater Nashville REALTORS® Press Release, January 8, 2018

Nashville Houses 1000NASHVILLE, Tenn. (Jan. 8, 2018) – There were 3,246 closings during the month of December, according to figures provided by Greater Nashville REALTORS®. This is a 1 percent decrease from the 3,280 closings reported for the same period in 2016.

Fourth quarter closings were 9,690 for the Middle Tennessee area. That total is a 1.1 percent increase from the 9,582 closings during the fourth quarter of 2016.

Final numbers for 2017 indicate there were 40,482 homes sold in the region, breaking the 2006 record of 40,056 closings. Compared to the 38,954 closings in 2016, the total sales for 2017 were up 3.9 percent.

“2017 was a record-setting year in many ways for Middle Tennessee’s housing market,” said Greater Nashville REALTORS® President Sher Powers. “From single month sales records to new highs in median price, buyers and sellers worked together to boost our market. All of this activity resulted in our region experiencing the best year on record for home sales.”

“Until now, 2006 had been the strongest year for real estate with 40,056 closings,” said Powers. “Despite uncertainty regarding tax reform and low inventory, buyers and sellers were determined to reach their real estate goals, whether that was through home ownership, real estate investment or any of the other avenues of real estate.”

There were 2,471 sales pending at the end of December, compared with 2,209 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 price for a residential single-family home was $294,000, and for a condominium it was $209,450. This compares with last year’s median residential and condominium prices of $266,408 and $180,000, respectively.

Inventory at the end of December was 9,011 down from 9,330 in December 2016.

“Though we know there will be challenges in the market this year, our market has a solid foundation,” said Powers. “For anyone looking to take action – buying, selling or leasing – options will be available. Making the choice to work with a REALTOR®, a real estate professional with market expertise, will be a competitive advantage for consumers.”

### 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. ###

Source: Greater Nashville REALTORS®, Press Release 010818

NAR: Homes Selling Faster Than Ever

NAR: Homes Selling Faster Than Ever
National Association of REALTORS®   article by Daily Real Estate News | December 22, 2017

The time homes spent on the market hit an all-time low in 2017 at just three weeks, the National Association of REALTORS® reports. A low inventory of homes for sale mixed with strong buyer demand has helped to keep market times low from 2014 to 2017.

During the height of the housing boom from 2001 to 2005, homes sold within a month of being listed. But as the housing market began to slow in 2006, the median time jumped to six weeks, and then to 10 weeks by 2009.

Tight inventories and a lack of construction of homes has helped to keep homes selling faster in recent years, NAR notes.

NARgraphic

Source: “Drop in Time on Market to Sell a Home,” National Association of REALTORS® Economists’ Outlook blog (Dec. 21, 2017); REALTOR® Magazine Online, Daily Real Estate News 122217

Nashville-Area Home Sales Up 6 Percent in November

Nashville-Area Home Sales Up 6 Percent in November
Article by Greater Nashville REALTORS®, Press Release 120717

House 1022NASHVILLE, Tenn. (Dec. 7, 2017) – There were 3,177 home closings reported for the month of November, according to figures provided by Greater Nashville REALTORS®. This figure is up 6.7 percent from the 2,978 closings reported for the same period last year.

Year-to-date closings for the Greater Nashville area were 37,236 at the end of November. That is an increase of 4.4 percent from the 35,674 closings, reported through November 2016.

“Sales are up 6.7 percent year-over-year. Typically, sales drop in the fall and days-on-market expand. October to November of 2017 saw that same pattern,” said Greater Nashville REALTORS® President Scott Troxel.

“Sellers are more hesitant in putting their homes on the market during the holidays and colder months, and conversely, traffic from buyers also slows during this time. However, those who are in the market during the next few months, whether buying or selling, are serious about making a move in the market.

“Fewer properties on the market means less competition for sellers. When potential buyers are gift shopping more than they are home shopping, that also means less competition for determined buyers. If buying or selling real estate is a priority for you, now is a good time to move forward,” said Troxel.

There were 2,906 properties under contract at the end of the month, compared to the 2,591 properties under contract at this time last year. The average number of days on the market for a single-family home was 29 days.

The median residential price for a single-family home during November was $285,000 and for a condominium, it was $216,751. This compares with last year’s median residential and condominium prices of $259,900 and $182,390, respectively.

Active inventory at the end of November was 9,454, down from 9,946 in 2016.

“Middle Tennessee is still on track to end 2017 with a record year for our housing market. The positive trends needed to sustain a healthy market – modest growth in sales and prices – continue to mark our region,” said Troxel.

### 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. ###

Source: Greater Nashville REALTORS®, Press Release 120717


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
(615) 512-9836 cellular ♦ (615) 371-2474 office
kb@bargers-solutions.com emailkb@kennethbargers.realtor email
www.bargers-solutions..com webkennethbargers.com blog
2 Cadillac Drive, Brentwood, Tennessee 37027 address

The Housing Hot List for October

The Housing Hot List for October
realtor.com    article by Daily Real Estate News | October 30, 2017

Nashville Union Station HotelListing prices for residential homes remained near record highs in October, according to a preliminary analysis by realtor.com®. The median list price nationwide was $274,000, near the $275,000 record set in June.

One point of relief for “market-fatigued buyers” who’ve faced low inventories for the past few years is that supplies of new listings are up slightly from a year ago, says Danielle Hale, realtor.com®’s chief economist. By the end of October, about 420,000 new listings will have hit the market over the entire month, realtor.com® predicts.

Some housing markets are more lively than others, with California continuing to see some of the most activity. Realtor.com® released its “hottest market” list for October, which is based on how quickly homes are selling and the amount of clicks cities receive on listings at realtor.com®.

The top 20 performing markets in October are:

  1. San Jose, California
  2. Vallejo, California
  3. San Francisco, California
  4. San Diego, California
  5. Boston, Massachusetts
  6. Stockton, California
  7. Sacramento, California
  8. Detroit, Michigan
  9. Denver, Colorado
  10. Modesto, California
  11. Columbus, Ohio
  12. Fresno, California
  13. Dallas, Texas
  14. Nashville, Tennessee
  15. Colorado Springs, Colorado
  16. Midland, Texas
  17. Rochester, New York
  18. Oxnard, California
  19. Santa Cruz, California
  20. Janesville, Wisconsin

Source: “Tight Inventory Drives High Prices, Quick Sales in the Nation’s Hottest Markets,” realtor.com® (Oct. 27, 2017); REALTOR® Magazine Online, Daily Real Estate News 103017


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
(615) 512-9836 cellular ♦ (615) 371-2474 office
kb@bargers-solutions.com emailkb@kennethbargers.realtor email
www.bargers-solutions..com webkennethbargers.com blog
2 Cadillac Drive, Brentwood, Tennessee 37027 address

Nationally: Meager Sales Rebound Underscores Tough Market

Nationally: Meager Sales Rebound Underscores Tough Market
National Association of REALTORS® article by Daily Real Estate News | October 20, 2017

House 1028Following three consecutive months of declines, existing-home sales ticked up in September from the previous month—but ongoing inventory shortages, coupled with recent hurricanes, muted any annual gains, the National Association of REALTORS® reported Friday.

Total existing-home sales, which include single-family homes, townhomes, condos, and co-ops, increased 0.7 percent to a seasonally adjusted annual rate of 5.39 million in September, 1.5 percent below a year ago. September also marks the second slowest month for sales in more than a year, behind August, NAR notes.

September EHS Infographic #1“Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country,” says NAR Chief Economist Lawrence Yun. “REALTORS® this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings—especially at the lower end of the market—and fast-rising prices that are straining budgets of prospective buyers.”

Sales activity likely would have been stronger if not for Hurricanes Harvey and Irma, which struck Texas and South Florida in late August and early September, Yun says, adding that both areas saw “temporary but notable declines.”

5 Stats to Gauge the Market
Key indicators from NAR’s September existing-home sales report:

Home prices: The median existing-home price for all housing types was $245,100, up 4.2 percent from a year ago. “A continuation of last month’s alleviating price growth, which was the slowest since last December, would improve affordability conditions and be good news for the would-be buyers who have been held back by higher prices this year,” Yun says.

Days on the market: Forty-eight percent of homes sold were on the market for less than a month. Properties typically stayed on the market for 34 days, down from 39 days a year ago.

All-cash sales: These transactions comprised 20 percent of sales, down from 21 percent a year ago. Individual investors accounted for the biggest bulk of cash sales; they purchased 15 percent of homes, which was the same level as a year ago.

Distressed sales: Foreclosures and short sales accounted for 4 percent of sales, unchanged from a year ago. Broken out, 3 percent of sales were foreclosures, and 1 percent were short sales.

Inventory: Housing inventory at the end of the month increased 1.6 percent to 1.9 million existing homes available for sale, but it still remains 6.4 percent lower than a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from 4.5 months a year ago.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 102017


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
(615) 512-9836 cellular ♦ (615) 371-2474 office
kb@bargers-solutions.com emailkb@kennethbargers.realtor email
www.bargers-solutions..com webkennethbargers.com blog
2 Cadillac Drive, Brentwood, Tennessee 37027 address

Greater Nashville: Region’s Housing Market on Pace for Record Year in Sales

Greater Nashville: Region’s Housing Market on Pace for Record Year in Sales
Press Release by Greater Nashville REALTORS® | October 9, 2017

House 1023NASHVILLE, Tenn. (Oct. 9, 2017) – There were 3,544 closings reported for the month of September, according to figures provided by Greater Nashville REALTORS®. This represents an increase of 2.0 percent over the 3,474 closings reported for September 2016.

Third quarter numbers experienced a 3.5 percent increase from 2016 with 11,299 closings reported, compared to last year’s third quarter closings of 10,920.

Year-to-date closings for the Greater Nashville area are 30,792. That total is up 4.8 percent from the 29,372 closings reported through the third quarter of 2016.

“For a month where home sales begin to slow, this past September turned out to be remarkable for our region. Middle Tennessee achieved the best performing month of September that we have on record,” said Greater Nashville REALTORS® President, Scott Troxel. “Yes, overall home sales are slowing down, as is typical for this time of year. But, the September success sends a strong message about the importance and attractiveness of homeownership.”

There were 3,292 properties under contract at the end of the month, compared to the 3,234 properties under contract at this time last year. The average number of days on the market for a single-family home was 27 days.

The median residential price for a single-family home during September was $280,000 and for a condominium, it was $223,450. This compares with last year’s median residential and condominium prices of $256,900 and $188,495, respectively.

Active inventory at the end of September was 9,358, down from 10,350 in 2017.

“Sales are up incrementally for both the quarter and year-to-date compared to last year, keeping us on track to the best housing market we’ve ever had,” said Troxel. “That said, we have to work to keep our market healthy and an attractive place to live. Greater Nashville REALTORS® is actively working with the Transit for Nashville Coalition to help bring solutions to our congestion and traffic woes, problems that can cause current and future residents to choose elsewhere to call home. Nationally, the National Association of REALTORS® is closely monitoring proposed changes to the tax plan to ensure homeowners aren’t hurt in the process.”

Source: Greater Nashville REALTORS®, Press Release 100917


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
(615) 512-9836 cellular ♦ (615) 371-2474 office
kb@bargers-solutions.com emailkb@kennethbargers.realtor email
www.bargers-solutions..com webkennethbargers.com blog
2 Cadillac Drive, Brentwood, Tennessee 37027 address