Numbers were up in August for Middle Tennessee! Sales rose by 27 %, more than 2,600 homes closed, and the average home is selling in less than 3 months!
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Middle Tennessee’s housing market continued its sales surge in August, leaving some to wonder: How long can it last?
The Greater Nashville Association of Realtors’ latest monthly snapshot, released Thursday, said August home sales rose by 27 percent. More than 2,600 residential sales closed last month, the second-highest total in five years and the fourth consecutive month it has topped 2,400 properties.
That continues an upswing, now more than one year old, that has resulted in 2012 sales running about 25 percent ahead of last year’s pace overall.
“The August home sales numbers indicate that the Greater Nashville real estate market is demonstrating an important characteristic — sustainability,” said Kendra Cooke, the association’s president.
Interest rates on 30-year fixed rate mortgages are averaging 3.55 percent, Freddie Mac reported Thursday. Banks also are lending at higher loan-to-value ratios than a year ago, “the clearest sign yet of an improvement in mortgage credit conditions," Capital Economics said in a recent report.
Still, Middle Tennessee’s housing supply — the number of properties on the market — is struggling to keep up with demand, and some real estate agents fear that could temper a continued robust recovery.
“Certainly at some point it will have to slow down,” said Tommy Patterson, principal broker at French Christianson Patterson & Associates and a Realtors’ association director. “Right now, we’re just glad to see the increased activity.”
There were 2,606 home closings last month, a 27.3 percent increase from the 2,047 reported in August 2011, the GNAR reported.
Prices were mixed, with a median of $175,000 for single-family homes sold in August, compared to $171,900 in August 2011. But the median price fell for condominiums from $152,000 a year ago to $147,634 last month.