It appears we are finally starting to see some positive growth in the number of Nashville homes for sale. Our inventory is still down considerably from this same time last year, but we have to look at the bigger picture.
According to Zillow, the number of homes for sale in Nashville was down 21.2 percent in January. In comparison, the number of homes listed in June were down by 16.4 percent from last year. Obviously we still have a ways to go, but this six month span shows promise that we are moving in the right direction.
Below is a chart showing a comparison for the inventory of Nashville homes for sale in 2012 and 2013. The numbers are as of June of this year and provided by the Greater Nashville Association of Realtors.
INVENTORY 19,136 16,828
Residential 1 1,812 10,555
Condominium 1,583 1,293
Multi-Family 293 184
Farm/Land/Lots 5,448 4,796
Outlook For Inventory of Nashville Homes for Sale
The inventory problem is one that is felt across the country right now. Nashville has a slightly higher decline in home inventory to date, compared to the national average of 12.2%. There are factors though, that favor a return to higher levels of homes for sale in Nashville.
GNAR President Price Lechleiter state, “June, second-quarter and year-to-date figures are all up more than 20 percent compared to the same periods last year. The median price for a single-family residence is more than $200,000 for the first time ever. The previous high was $196,000 back in June of 2007. Seeing prices increase may encourage some people to consider selling, which would be helpful in light of the fact that inventory remains low. Quality properties are selling very quickly right now.”
Words of Caution
The association also cautioned that “Increasing sales during the summer season is typical, but the number of closings would likely be even higher if more quality inventory were available. There is currently only about a 4-month supply of single-family homes, not counting the fact that more than 3,000 of the available properties have contracts pending,” added Lechleiter. “Buyers are well-represented and know what they are looking for in their home searches. Potential sellers should remember that homes that are truly market-ready are moving well, but buyers are only interested in the properties that have been prepared and priced properly.”
All in all, it appears that there could be some relief in the housing shortage. What’s your opinion on the future of inventory for Nashville homes for sale?