In Response…

    A reader left this comment on my most recent post:

    "When I purchased a pre-construction unit over a year ago, developers were not negotiating on price. It was pay this or you don’t get it. From what I understand now is that a lot of other new developments are taking offers. Is this because of a hurting market or have they finally realized that the market may not support their prices? It’s hard to say with everything being speculation and not many developments being completed. Also, I wonder how many buyers would choose to lose their initial deposits and walk away if a developer chooses not to negotiate prices now."

    Interesting thoughts. I think that the market is actually quite decent in urban Nashville, and I am surprised with the flow of buyers. The media, with national headlines about the real estate market, has influenced perception, and possibly had some impact on what it takes to sell. That said, the reality is that we are selling well. Village had its best month ever in July.

    A rundown of current projects: we have sold 31 of 38 at The Glen, all of Westchester, and over 120 in newly launched Velocity. We have just 10 of 70 left at District Lofts, and just one left at Madison Square. It may be that we find that ‘all projects are not created equal’. Some may be better values, and require fewer incentives. I think that we are at a slow point in a good local market economy, and that we will do fine with our urban Nashville purchases.

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    2 Responses to “In Response…”

    • Anonymous

      Written on

      Purchasing pre-construction at 5% and closing are two different things. What percentage of your best month of July were pre-construction vs. buyers actually closing. I think the market is great in nashville, especially the urban market. But with all the tightening restrictions, we will find out how many of those pre-construction buyers will actually close.

      Reply
    • Mark Deutschmann

      Written on

      All were buyers actually closing. Our sales in August, that is, new contracts being written, which will close in the future, were up from 2006 as well. We are enjoying a good closing ratio, and have now closed 147 of 148 at The Enclave, have closed all in first two phases of Acklen Row. We have now started to close Bristol West End, which is going well too, with over 50 closed at this time through August. Sure, we will see how the greater national economy affects the future market. That said, we’ve been averaging 7 sales per month now at Velocity, post launch, and have surpassed 50% in unit sales, with 133 under contract. These are folks who want to live urban, like the gulch, and continue to be bullish on Nashville’s emerging urban market.

      We are really studying the mortgage market, and are striving to make sure that our buyers have the best access to loan programs which will be in place when projects close. We are fortunate in that we have aligned with a large, stable bank and mortgage entity which is honoring commitments to buyers, even as loan programs and requirements are shifting.

      Reply

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