Home prices in Nashville increase by 2.3 percent in July

Data from a recent report by housing market research firm CoreLogic revealed that home prices in Nashville continued the recent upward trend in July 2012, according to the Nashville Business Journal. Prices on homes for sale in the city increased by 2.3 percent from the same time a year ago. Prospective homeowners looking to capitalize on this surge in prices before they climb too high should consider checking out the numerous houses for sale in Nashville.

"It's been six years since the housing market last experienced the gains that we saw in July, with indications the summer will finish up on a strong note," Anand Nallathambi, the president and Chief Executive Officer of CoreLogic, said in a news release. "Although we expect some slowing in price gains over the balance of 2012, we are clearly seeing the light at the end of a very long tunnel."

The prices of homes in Nashville were slightly lower than the average home prices around the country, which increased by 3.8 percent in July 2012 from the previous year. This figure included distressed sales. Without counting the number of distressed sales, national home prices went up by 4.3 percent. Excluding distressed sales in the Nashville metro area, prices increased by 2.1 percent.

The report from CoreLogic also indicated that August 2012 home prices are likely to see similarly large increases. Early estimates have suggested that national average home prices could rise by as much as 4.6 percent year-over-year from August 2011, as well as at least a 0.6 percent increase from July 2012. Excluding distressed sales, those numbers could jump to 6 percent and 1.3 percent respectively.

Even though home prices in the Nashville area are increasing, an abundance of cheap homes are still available, according to The Tennessean. Prices of single-family homes in a category that local realtors have deemed as being modestly priced were up 26 percent in July 2012 compared to the same time period a year ago. Median prices of these homes were also up slightly - $1,350 - to an average of $181,250. Local realtors believe that unlocking more from the "shadow inventory" of bank-owned homes could continue driving up demand.