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Nashville Home Prices Have Increased More Than $30K This Year

Posted by Scott Layson on August 27, 2016
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The latest housing stats from the Greater Nashville Realtor Association are out for the month of July and there is one stat that is particularly interesting. The report showed that there were 3,705 home closings for the month of July, which is actually a 3.3 percent decrease from the 3,832 closings reported for the same time last year. Although it was nice to see that the average days on market was down 3 days, which tells me that there is still plenty of demand, just not enough inventory to meet that demand. No big news there! However, I think it will be worth monitoring the market closely over the next quarter as Gary Keller, Founder of Keller Williams Realty is predicting a market shift in the near future.

July 2016 Nashville Home Sales

Current Home Values

Now to the exciting part for homeowners in Nashville. The average home value increased by more than $30,000 since last July. The  report shows that the median residential price for a single-family home during July was $267,000 and for a condominium it was $189,986, compared to last year’s numbers of $234,900 and $161,500, respectively. That’s quite a nice gain for homeowners and a source of frustration for potential buyers.

Real Estate Closings by Category

 

July 2015

July 2016

CLOSINGS

3,832

3,705

 Residential

3,224

3,146

 Condominium

435

388

 Multi-Family

23

20

 Farms/Land/Lots

150

151

Quotes from GNAR President 

“The slight decline in home sales is not a cause for concern, and is actually a positive for the market. The furious pace homes have been selling at is not sustainable. The imbalance of supply and demand, combined with the continued gains in price, means inevitably we will reach a point where the market will slow down. This pause may be a sign the market is beginning to slow down and correcting itself until more inventory is available. 

 “July marks the first time in seven months that Middle Tennessee home sales have been down year-over-year,” said Creswell. “That aside, our pending home sales numbers remain high, proving homeownership is still important and there are plenty of prospective buyers in the marketplace.”

“Despite a slight decrease in sales, median home prices continue to rise. We’re in the middle of the perfect storm that continues to drive up our median prices,” said Creswell. “Nashville is an incredible place to live, so the demand is high. But our low inventory levels make meeting the demand a challenge. At the end of July, interest rates were hovering around 3.5 percent, which is lower than the 4 percent rate this time last year. All of these factors combined contribute to increased prices.

“Homeowners appreciate the gain in home prices, as it positively impacts their equity and investment. But for those trying to buy a home, especially those new to the market, these gains are obstacles. The simple fact remains, until we have more inventory available, home prices will continue to rise. Realtors are hopeful the recent legislative change in how condominiums are approved for FHA financing will add more units to the supply and lessen the burden on first-time buyers.”

What’s Pending?

As of the end of the month there were 3,724 sales pending, which is a slight increase compared to the 3,708 pending sales we saw at this time last year. The average number of days on the market for a single-family home was also down three days from last year’s 57 days on market.

Nashville Home Inventory by Category

 

July 2015

July 2016

INVENTORY

13,728

12,329

 Residential

9,094

8,424

 Condominium

965

798

 Multi-Family

116

95

 Farms/Land/Lots

3,553

3,012

Thinking about buying or selling a home in Nashville? 

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