According to the President of the Greater Nashville Association of Realtors, Alice Walker, Nashville’s home sales patterns are beginning to make sense. Read below from her Tennessean article:
The truth always comes out. It’s a proven fact. It may take a while, and we may not be around when it reveals itself, but it always does.
Throughout this year, at the beginning of each month, I’ve used this column as a way to shed some light on the monthly home sales figures released by the Greater Nashville Association of Realtors. Real estate is complex, so I’ve tried my best to help consumers understand the data in true context.
In recent months, as the numbers continued a downward path compared with the same months last year, I’ve also compared current-month figures to those of 2009. That was done because throughout the first half of 2010, potential home buyers had the added incentive to buy with the first-time and existing home-buyer tax credits. The home sales figures from last year point to a market inflated by the tax credits as buyers moved quickly to take advantage of the incentives. Comparing the new numbers with 2009’s has made a purer comparison, sort of like the apples-to-apples adage. (Note: While the tax credit was available in 2009, most of the related activity happened closer to the deadline in mid-2010).
Finally, with July’s home sales data comes the truth. And, thankfully, it’s the truth we’ve been pointing out all along. GNAR released July home sales earlier this week, and — much to everyone’s delight — they revealed a double-digit increase over the July 2010 home sales. Without the added bonus of the home-buyer tax credits, comparison of the monthly data is finally showing its true colors. (Note: There is still a little residual impact of the tax credit through September, but June 2010 was when most of the related activity ended).
Middle Tennessee Market Holds Its Own
News about the Middle Tennessee housing market has not been as bad as it has appeared. It would be safe to say that without a tax credit last year to distort the numbers, we probably would have seen a different comparison year to year. We have held steady through most of 2011 with about 2,000 transactions monthly, proving that homes are being bought and sold in the region.
Seeing the numbers up is definitely something to be celebrated. However, I wouldn’t start singing “Happy Days Are Here Again” just yet. Realtors stand firm that it is a tremendous time to purchase a home, with historically low interest rates and great housing inventory. There remain, though, economic factors, such as unemployment and an unstable economy, working against the housing market.
If you are considering purchasing or selling real estate of any kind, take the right first step by consulting a real estate professional. We’ll work hard to provide the most truthful and accurate representation of not only your individual transaction, but the Greater Nashville market, as well.