Nashville real estate market finally turning a corner!
Like the rest of the country, the Nashville real estate market took a hit over the last few years. The good news is experts are saying that Nashville real estate is finally turning a corner. Just how bad did the market get? During 2006 there were 40,056 closings in Nashville—this is the same amount that closed during 2009 and 2010 combined. Each month during 2012 the Nashville real estate market has continued to move upward. January 2012 saw a little over a thousand Nashville real estate closings. By April of 2012, the number of closings almost doubled to 2,186. During the first three quarters of 2012, Nashville saw a total of 19,400 closings compared to 15,427 closings during the same time period in 2011. All of the relevant data shows that Nashville real estate market is starting to pick back up to a healthy market once again. For bargain hunters, this means that the opportunity to get in on rock bottom prices may be running out.
Not only are homes sales up as much as 100 percent since comparable periods over the last several years, but construction on new homes is also starting to boom once again. A recent study done by Metrostudy showed a 57 percent increase in new home constructions in Nashville during the first quarter of 2012. The same study brings potential home buyers and sellers additional good news. They ranked Middle Tennessee in the top 10 position for three important categories—total inventory, finished vacant inventory, and vacant developed lot supply.
Not only are the number of home sales up overall, but the median sales price of Nashville real estate is up as well. In May of 2012, an average home sold for $165,120 compared to $159,070. By September, median home prices had risen to eight percent higher than the same month last year. Condo prices, however, dropped since last year. The median condo price in May of 2012 was $141,190 compared to $148,000 last year.
Along with actual sales and median home prices, inventory is another common tool used to determine a housing market’s strength or weakness. Nashville has seen a healthy reduction in available inventory this year, bringing levels back to where they were prior to the housing crisis. As of June, a 12.6 percent reduction in inventory resulted in less than 18,000 available homes for sale.
Overall, it appears as though Nashville’s housing market is rebounding relatively rapidly from the housing crisis faced by the country over the past several years. Most experts agree that time may be running out for buyers to find steals among Nashville’s real estate market. For those who are looking into buying Nashville real estate, it is probably a good idea to turn to a real estate professional who has extensive experience in the real estate industry. Also, local Nashville real estate agents have the advantage of being familiar with the real estate market that they specialize in. Although it is important for homebuyers to conduct their own thorough research, having a Nashville real estate agent guide you through overall home buying process can definitely help you unload some of the burden.