Nashville TN Real Estate Sales Continue to Rise

The Greater Nashville Association of Realtors (GNAR) recently published their findings for November 2009, and it’s great news… the number of home closings for the month of November  in the Nashville TN real estate market jumped 58.7% compared to November of 2008.  That represents 1,973 closings versus 1,243 over a year ago.   The Greater Nashville market includes Davidson County (Nashville), Williamson, Rutherford, Wilson, Sumner, Dickson, Robertson, Cheatham, and Maury Counties.  According to the GNAR President, Mike Nichols, the increase in closings was largely due to the first-time buyer tax credit, and the fact that no one knew if the program would be extended beyond the original deadline of November 30, 2009 which really put pressure on buyers to get under contract and close before then.  Mr. Nichols also believes that since the tax credit has been extended to June 30 of 2010, the high level of activity should continue, despite the normal winter slowdown.  Finally, he was encouraged that the greater Nashville TN real estate market would be further helped with some move-up activity since the new tax credit has been expanded beyond just first-time homebuyers

While the year over year comparisons are really eye-popping, sales are still down overall versus this time last year.  Year to date closings through November are 19,571, which represents a 14.3% drop from 2008 when 22,824 closings were reported through November.  Much of the decline can be explained by the effect of the slower national and local economy, but also by the much tighter loan guidelines as well as the new appraisal guidelines which have delayed or killed purchase transactions virtually everywhere.

Pending sales were up 37% in November, compared to November of 2008.  Also, November inventory levels were down almost 5%, and the average days on the market are at 82 days, down  from about 89-92 days from the beginning of 2009.  The single-family residential inventory is now at a 7 month supply, and while overall inventory (including multi-family and land) is still relatively high at 11-12 months, they are much better than the last 2 years.

Single-family home prices in the area dropped  about 4.4% ($165,500 in 2008 to $158,500 in 2009) and condos saw a decline of 3.9% ($150,000 to$144,400).  This is great news for folks looking to get a good deal on a home in the Nasvhille TN real estate market, especially when combined with the fact that rates are still hovering near their all-times lows, and the potential to get up to the $8000 credit from the government.