Deals

This is what you do when everyone is distracted

Nashville Real Estate Market November 2017One of the great things about working in real estate is that you never know what to expect.

It’s always something new every day.

And that’s great for people like me that get bored doing the same thing. 

I’m seeing a change in the market as we get close to the end of the year.

Usually, we would expect the market to be slowing down in terms of sales and median price.  And we would expect to see the inventory trending upward.

If anything, the last decade taught us there is no “normal” in real estate.  

Here’s what I am seeing now.  (And you can see it too in the attached chart) 

  1. The median price increased by $7,358.  
  2. Inventory dropped by 1.1%.

If only one of them had changed, I probably would not have thought much about it.  

But with both changes and my experiences in the last week, I think there is still a lot of interest in the market this holiday season.  

In the past, you’ve usually heard me talk about some of the amazing things that happen in real estate this time of year.  

Like the time one of my clients picked up a property at nearly half off because the rest of the world was distracted.

Now I wouldn’t expect that kind of miracle this year.

I would keep this in mind instead.

Most people buying or selling this time of year are serious and your competition is scarce.  

Things can happen quickly, so you’ve got to be ready to move fast.  

Like this home I put on the market at the end of last week.

I wanted to share it with you as today’s Daily Deal.

But it’s...

Feeling overwhelmed by information? Here's your best solution

Overwhelmed by data?  Here's the best solutionHere’s the unusual thing about most tech companies, especially in the real estate sector.

The main product that they sell is data. 

The most famous of them all, Facebook, sells your personal data to advertisers so they can target you with ads on their portal and across the web. 

Google does the same thing.  

You can add Zillow to the mix too.

They collect tons of information about the real estate market to attract people to their ads.

With the internet exploding in size every year, the amount of data available also increases.

And it’s gotten to be such an overload, it’s hard to tell what to believe.  

For example, I just did a quick search on google for “Nashville Real Estate Market Forecast” and it turned up 594,000 websites.  

Each one is full of information and not all of it agrees with each other.  

That’s why this quote for Albert Einstein was so true.

He said, “Information is not Knowledge.”

And in this case, the amount of information (or data) is so overwhelming that it detracts from the truth.  

Big business with all their resources are facing this problem too.  In a recent article in Forbes magazine, Forrester Research states that as much as 73% of data collected is never used for any strategic purpose.  

And while 70% of the firms surveyed admitted that they wanted to establish a data-driven culture, only 28% have been successful in achieving it.  

And that’s where someone like me is helpful to anyone that is buying or selling a home.  

I already have a thorough understanding of the Middle Tennessee market because I practice in it every day. ...

Here's the first prediction of the new year

Here's the first prediction of 2018 in NashvilleIf there is one thing that you can count on in any new year, it is an onslaught of predictions.  

Everyone wants to know what’s going to happen as the world turns, and the media capitalizes on this desire.  

Soon you’ll find stories forecasting the upcoming winter, your favorite sports team, the mid-term elections, the economy and the real estate market.  

But many predictions are based on “feelings” and those are the least likely to come to fruition.  

So reader beware when you see the words “I think” and no data to back it up.  

Instead of focusing on my “feelz”, I tend to look for trends instead.  Movements in a market that are just starting to pick up steam.  And then I look to see if the conditions are ripe for that trend to continue.  

That’s what I prefer to hang my hat on.  

Like in 2005, when Gretchen, my wife, asked me to join her in the real estate business.  

At that time, I didn’t see myself as the traditional real estate broker, so I looked at another segment of the business.  

REO. Or more commonly known as foreclosures.  

At that time, you could have less than stellar credit, buy a home and get lots of cash back with no proof of a job or any income.  

The mortgage industry called them “stated income” loans because you signed a paper stating your income. 

Brilliant, right?

I saw that the default rate was climbing at the same time they were handing out loans like candy at a country parade.

This trend convinced me to start a real estate business in 2005 focusing on foreclosures and the rest is history.

Every year since then,...

From hired to fired in less than one day

From hired to fired in just a few hoursWhether you agree with the decision or not, the online world did something amazing yesterday.

It would never have happened five or ten years ago because the world wasn’t tuned into the news like they are today.  

And, the news of the past reported on things that already happened.  Almost like a history class for the recent past.

These days news gets reported as it is happening by everyday people.

Or even before it becomes final.  

That gives news the ability to change the course of history.

And that’s exactly what happened yesterday.

If you are not a fan of the Tennessee Volunteers, hang with me for just a minute.  

Yesterday morning, word got out that Tennessee was close to finalizing a deal with Greg Schiano for the head coach position.  

They agreed to a Memorandum of Understanding, which is the final step before a contract is signed.  

Word got out and the fan base of the Tennessee Volunteers exploded in rage.

The big problem was this coach's lack of overwhelming success in his prior head coaching stops.

He did have one big year at Rutgers in 2006, where his team went 11-2 and finished 12th in the national polls.  

Other than that year, the rest of his coaching record is average compared to Tennessee football standards.  

His overall head coaching record in college was 68 wins and 67 losses.  In his short career in the NFL at Tampa Bay, his record was 11 wins and 21 losses.  

Not the kind of record that inspires a fan base who has mired in a decade of mediocre football.  

On top of his win-loss record is his coaching history at Penn State.  He was part of Jerry Sandusky’s defensive staff at Penn State...

The next tech breakthrough is already in your pocket

The next tech innovation is in your pocket right nowThe big buzzwords in tech right now are Artificial Intelligence [AI] and Virtual Reality [VR].  Yet, we won’t see any real benefits to our personal lives from these for a few years to come. 

However, there is another new technology that can help you with life right now, and that is Augmented Reality [AR].

The first big AR technology was the Google Glass.  Glass was a set of glasses that showed you a display of information on the lens of the glass.  So you could see the world and information at the same time.  Like the Heads Up Display in a fighter jet.  

Because Glass had a built-in, outward facing camera it was considered creepy and never fully accepted by the public.  

Pokemon Go is probably the most famous use of AR technology.  It was released in 2016.  Since it is a game, most people do not benefit from its use.  

However, the latest adaptation of AR could be Amazon’s next game changer. 

One of the biggest problems with shopping online is that you don’t get to see and hold the product before the purchase.  

This makes people hesitant to buy certain products online.  Like art or decor for your home.  

Amazon is now using AR and your phone to show you what something would look like in your home before ordering.  

It lets you see how it fits in the space and if it coordinates with the rest of your home.

Sounds amazing right?

Check out the video below:

https://youtu.be/uhdOzpblrm0

...

Is Nashville the new model for affordable housing?

Is Nashville the new model?In another win for private/public partnerships for Affordable Housing in Nashville, LDG Development cut the ribbon yesterday on their latest project, The Paddock at Grandview.  

This new development is located on West Trinity Lane, just across the river from Metro Center and north of the new TopGolf location.

Once finished, this site will feature 240 units, clubhouse, pool and more.  Currently, there are 120 units occupied and the rest will be completed near the end of the year.  
The two and three bedroom units rent for $800 - $900 per month and are designed for residents who earn up to 60% of the median income for this area, around $41,000 per year for a family of four.  

At the groundbreaking ceremony in June 2016, Mayor Barry said, “The Paddock at Grandview reflects this city’s commitment and momentum in providing a variety of affordable and high-quality housing options for Nashville families. It is also an example of what can result when the private and public sectors work together to find solutions that address the needs of our community.” 

The funding mechanism for The Paddock at Grandview came from another initiative through the Metro Development and Housing Agency [MDHA] called PILOT or payments in lieu of taxes.  

This was the first development built under the new program and will not be the last.  

LDG Development is currently applying for funds under the same program for a new location near Madison at 3711 Dickerson Pike called Buffalo Trail Apartments.

In the past, the city put too much focus on a “private-only” or “public-only” solution, and the results were underwhelming.  

Things started to change in Nashville in 2013 when then Council Member At-Large...

The one thing every investment needs to be successful

The one thing every investment needsEvery investment needs some “special sauce” in order to maximize your return.  

Many times that “one thing” is well known.  Yet, many people look right over "it" when it comes to their personal investment.  

Take football for example.  

If you owned a football team, what would be the most important factor in the success of your team?  Where would you spend the big bucks?

For me, that would be the head coach.

Others might say that you need a great quarterback.  Or that defense wins championships.  But good players come and go.

If you want to build a team that competes at the highest level year after year, then you need to invest in the best head coach.

At least, the best that you can afford.  

Let’s take a look at the New England Patriots.  The Patriots used to be one of the worst teams in NFL history.  

In 2000, they hired Bill Belichick to be their coach.  Since that time, the Patriots have won five Superbowls, seven AFC titles and have won their division 14 times in 16 years.

And not once did they have a losing season.  

The dynasty continues today as the New England Patriots sit atop of the AFC East with two more wins than any of the other team in their division.

If Belichick was the only example, you might say that his success is a fluke.  

So, let’s take a look at one of his proteges, Nick Saban, the current coach of the University of Alabama.

Saban said that his time under Belichick was the “worst four years of his life.”  Though, he obviously learned a few things under his wings and gives him credit for teaching how to run a successful program.  

Since he started in 2007,...

This is a day that Mary will never forget

A day she will never forgetNovember 8th is a special day for me because it was the day my first child was born.  

I’ll never forget that day, and neither will Mary Herrera.

But, for obviously different reasons.  

On November 8, 2003, Mary was the lead gunner on a Humvee in Iraq escorting prisoners to a holding facility in Fallujah when she noticed two spotters on top of the next bridge.

She immediately knew what this meant and dropped back into the vehicle to warn her fellow soldiers.  

Before she could stand back in her turret, they were already being hit.

Mary started returning fire when she felt something in her right arm.  She initially thought she had been hit by a rock and kept firing.  

Then she was hit again and her right arm fell limp.

She continued to return fire until they made it safely through the ambush.  

Due to the look on her commanders face, she knew the injury was bad.

She was airlifted to a hospital in Fallujah where doctors told her that she would lose her arm.  Later she was sent for surgeries in Germany and Brooke Army Medical Center in Texas.  

It took 20 operations over the course of a year to save her mangled arm.  Though she still suffers from chronic pain.  

Having no regrets, Mary said, “My parents raised me very well. My faith is so concrete there is nothing I can’t handle, nothing I can’t deal with.”

The commander of the Arizona National Guard says that Mary is the bravest person that he ever met, and that “she is a true example of a modern citizen-soldier who, despite being small in stature, she is motivated, loyal, physically and mentally capable, disciplined and proficient, courageous and always a professional.”

Her story...

This Is Another Encouraging Sign Of The Nashville Market

Another encouraging sign of the real estate market in NashvilleHere’s what I think of the latest market data release from the Greater Nashville Realtors.  

Let’s look at the numbers first.  

Sales fell 1.7% over the same month last year.  This is the first time that has happened in several years in Nashville and is a sign that the market is returning to a healthy trend of a sustainable level of sales.  

What was interesting is that most of the loss in sales was due to condos.  The number of condos sold this year in October was 14.6% less than last year.  The condo inventory is slightly less than last year, but not enough to make up for the difference.  

We will need to keep an eye on this to see if it is a developing trend.

Single Family Home sales were virtually flat at 0.47% less than last year. 

Scott Troxel, the President of Greater Nashville Realtors said, “…A minor adjustment like this is not cause for alarm. Our market’s dynamics are very positive, both in the local economy and the housing market. We expect to see a typical lull in the fall and holidays, followed by renewed energy in January.” 

Inventory is down as expected and currently sits 6% lower than the same time last year.  However, when you look at the recent inventory trend it shows the numbers have been climbing for the last six months.

This is another encouraging sign that the market forces are guiding us back to the historical norms and a more reasonable market for buyers.  

Median price should be falling this time of year, and our numbers are right on cue.  We expect to see a run-up in the spring, a peak around June/July, and then a slow decline for the remainder of the year.  

The median price is currently 6.4%...

If you think Spring is the best time to sell, then this is for you

Spring is the best time to sellThere is nothing wrong with waiting until spring to sell your home if time is on your side.

Just don’t make the mistake of waiting until March to get started, especially if you want to maximize your return.  

Getting the most out of your home takes time.  And it’s like much longer than you anticipated.

Here’s a common scenario.

When we first meet with a homeowner, one of the first things that we do is tour the home with you.

On that tour, we take notes of all of the highlights of your home and all of the renovations that you have made. We do this to show your home in the best light possible in our marketing.  

During this time, we also gather a list of suggested improvements to your home so that it creates the best possible impression for anyone who sees your home in person.  

We also prioritize this list, so you can concentrate on those that make the most sense for you to complete. 

Many of the items on the list are simple.  Things like decluttering a closet, cleaning windows or painting the front door.  

Even the simple items take time.  And many times it is much longer than we anticipate.  So I suggest that you start working on these things now, while you have the time to complete them without feeling rushed.  

On average, the time my clients estimate is usually half of the actual time it takes them to complete the project.  Life gets in the way, so I recommend that you start twice as early as you anticipate.  

Now some of the items on the list might be better suited for a handyman or contractor because you do not have the time or experience to complete the project.  

The same timing issue comes into play with most contractors.  So it’s...

What's your home worth in today's market?

What is your home worth in today's market?I missed sending this letter to you on Wednesday because I spent most of the day traveling to the National Association of Realtors Annual Convention in Chicago.

Today, I am auditing the new Pricing Strategies class in order to teach it to others. This class teaches agents how to perform a comparative market analysis [CMA] and use it to establish the likely sales price for any home.  

I took a version of this class from one of my bank clients 10 years ago.  It was taught by an appraiser and it was instrumental in my clients’ success over the years. 

Pricing is more art than science, so you need to wrap up all of the loose ends that you can in order to get close to what the market is willing to pay.

Here are some of the problems with pricing that can make it a difficult, even for an experienced agent. 

First, no two homes or lots are exactly alike.  Even if a home has the exact same floor plan, the level of maintenance and upgrades can cause big fluctuations in price. 

The same is true for lots.  Some have better views, more privacy or a better location.  These factors all affect the price.

Second, the same things are not important to all buyers.  Therefore, each person would assign a different monetary value to every attribute in a home.   For example, a chef’s kitchen is a popular choice for many buyers now.  People spend tens of thousands of dollars on their kitchen and appliances.  

If you rarely cook, are you going to place a high value on a $100,000 kitchen?

And upgrades rarely add 100% of their cost to the value of the home.  The most popular renovations when completed by contractors add approximately...

Most People Would Skip Right Over And Not See This

Most would miss out on this valuable informationMost people would skim right over this information in the recently released 2017 Buyer and Seller profiles.

I thought it was important to share with you.

The National Association of Realtors reports in their latest research, three long-time trends that are headed in new directions.  

These changes are important because they affect the market locally as well as the national level.  They are changes from long-held norms because they are driven by the current economy, lifestyle, and market.

I think it is important to understand the macro forces in real estate to maximize your investment and enjoyment in your property.  

Otherwise, things might not turn out as planned.

The first deviation from a long-term norm was the most concerning to me.  The share of the market for first-time homebuyers fell to a new low of 34%, from last year’s 35%.  The long-term average for the market is 40%.  

We’ve all heard the the latest generation is now buying homes, however, it just not near the pace we’ve come accustomed too.  And there is not one universal reason why.  

Some of it is based on economics.  Higher prices and student debt have helped to postpone purchases.  For others, it’s changes in lifestyle.

Current buyers report that the most difficult part of the process was finding the right home to purchase.  This may be another force that is driving the participation rate down for first-timers.  

Second, would be the length of stay in a home.  The long-term average is seven years between the purchase and sale of a home.  Currently, that number is 10 years.  

This may be another reason why first-timers are not a higher percentage...

What's more important than your principles?

What's more important than your principles?If you are a fan of the Tennessee Volunteer Football team, you probably have heard the frustration with our coach, Butch Jones. 

Most people expected that he would be fired by now because we have the worst performing offense in college football this year.  

With a string of Top Ten recruiting classes, it’s hard to look past the failures of this year’s team to put points on the board and “W’s” in the win column.  

Based on the team’s lack of production, you won’t see many people argue that Butch should be fired.  

While I don’t disagree with that last statement, there are many good things that have happened to this program since Butch took over.  

Here are three things we can celebrate about Butch Jones’ tenure at Tennessee.

First of all is the expectation.  People outside of the program and fan base expect Tennessee to be a contender in college football.  This has been absent from our program for almost a decade.  It helps when you put together three consecutive nine-win seasons and bowl victories. In the SEC, only Jones, Nick Saban and Jim McElwain have done the same over the last three years. 

Second, when Jones took over the program, Tennessee was in danger of losing scholarships or post-season bowl games due to the scores in the Academic Progress Reports [APR].  Tennessee made huge strides across the board in academic progress.  In addition, the graduation rate of the football team was also improved.  

Last, Butch Jones is a man of principle.  College coaches are under enormous pressure to win games, even when their butt in not on the hot seat.  Jones suspended two of his best players for key...

Focus on what you can control

Focus on what you can controlTony Gonzalez will be a slam-dunk for the Hall of Fame when he is eligible in 2019 because of what he accomplished over his amazing,17-year career in the NFL.

He holds the league record for most receiving yards, receptions and touchdown receptions by a tight end. Tony is tied for the most Pro-Bowl appearances (14) with Peyton Manning and two other players.  

In total, he owns 22 NFL records and 5 franchise records with the Kansas City Chiefs.    

This comes after a collegiate career at University of California where he was an All American who played both Football and Basketball for the Golden Bears. 

And on the eve of his last football game, here’s what he said to his teammates about success, “You all see me catching 100 balls before practice. You see me catching 100 balls during practice. You see me stay to catch another 100 balls after practice. It's that routine that'll make you the best you can be. Stop chasing success. Success will seek you out when you adopt that approach to your job. Make football #1, and the rest will follow.”

There’s a lot to be said about Tony’s approach to the game.  

It reminds me of one of my favorite business maxims.  One that I have lived by for many years that has always served me well.

Focus on what you can control and the rest will fall in place.  

Tony focused on catching balls.  He did it over and over.  Way beyond what his colleagues would do. And he would not stop until he was the best in the business.  

The same goes with real estate.  You need to practice it daily to get better.  And practice goes beyond working for my clients.  To me it also means: putting in the research, studying market trends, learning from other...

Ugly photos are your best friend

ugly photos are a buyers best friendDid you ever find a home for sale and it’s in your favorite neighborhood?

And you click through to see the photos and there is only one awkward photo of the living room?

Or even worse.  No photos at all.  

You get annoyed, log out and get on with your day.

It’s human nature to think that way.  And I would probably do the same thing if I didn’t know this “obvious” secret.  

This is for people who love value, especially when they buy real estate.  

While this works better in a market with more inventory, there are still few hidden gems to find in this seller’s market.  

Listing photos are a critical factor in selling a home because 92% of all homebuyers use the internet to search for homes. 

And if a home has no photos online, it literally goes invisible after a few days.

A lack of photos is not a good indication of the quality of the home.  

Sometimes there are technical difficulties or a lapse in the process that keep the photos offline. 

So, when you find a home with the right address and no photos do this first.

Use Google Maps to look at the street view of the home.  This picture may not represent the current state of the home, but it gives you a clue as to whether you should proceed.  

And if you are still interested, you should do one of two things.

  1. Drive by the property for a closer look
  2. Give me a call to see what I know about the property

Here’s why this works.  

99% of all people will do as I suggested at the beginning.  They will keep on clicking when there are no photos.  

So most will not even be aware of the home which means less competition for you. 

Less competition...

Scary Neighbors Make Great Fences

Scary neighborsThe journalist Arthur Baer summed it up best when he said, “A good neighbor is a fellow who smiles at you over the back fence but doesn't climb over it. “

Over the years, I’ve had lots of wonderful neighbors.

Like Mrs. Woody, who used to live next door when we first moved to Nashville. She was one of the sweetest ladies that you’ll ever meet.  And she shared part of her home with others so she could stay in it for as long as possible.  

One of her favorite pastimes was to sit on the front porch.

She usually had something to do while she was sitting, however, she was never too busy to talk.  

And I took many opportunities to sit with her a while, soak up some of her wisdom and listen to her stories.

She lived in that same house for more than 50 years and I loved to hear how our neighborhood changed over that time.  

We’ve had our share of bad eggs too.  

People who will smile at you one day and then threaten you the next.  

I never let the rotten ones get to me though.

I figured the best thing to do was stand my ground, persevere and they would eventually move.

And they always did.  

This next story caught me by surprise.  It was so bizarre, at first I thought the article was satire.

This might be the pettiest thing I’ve ever heard.  

In Toronto, a couple renovated their home and took inspiration from other homes, including their neighbors.  

You would think that would be welcome.  A renovated home in the neighborhood that looks and feels like it belongs.

Yet, their neighbor a few blocks over did not feel that way.

He sued his neighbors to the tune of $2.5 million for remodeling their home to look “strikingly similar” to theirs.  

...

It's strange how few people are talking about this scam

Nashville real estate scamA few months ago, I told you about a new scam that is targeting the wiring of funds for real estate transactions.  

I had no idea of how prevalent it would become in our industry.  

According to statistics from the FBI, real estate wire fraud has increased 1,300% since the beginning of 2015.  

And since October 2013, more than $3.1 billion was reported in actual and attempted losses worldwide.  

Here are some of the worst examples this year

  • $411,548 Loss in Maryland, August 2017
  • $1,000,000 Loss in New York, June 2017
  • $1,570,000 Loss in Washington DC, May 2017
  • $272,000 Loss in Colorado, March 2017

In each of these cases, one of three things happened.  Either the title company, the seller or the buyer received a fake email or phone call requesting a wire to the wrong account.  

And here’s how they did it.  

First, the bad guys find a way into the email system of the buyer, seller or title company. 

The usually do this by sending you a phishing email.  A phishing email is a fake email from a believable source that has a malicious link. 

For example, if you used gmail, you might receive an “official looking” email from Google asking you to login.

You enter your login and password into the form and it goes straight to the crooks.  After the fact, you probably didn’t think twice about doing it and had no idea that you were scammed.

In the case of a seller, they are looking for your email to the title company telling them where to wire the proceeds of the sale.  

Shortly after you send the email, they send another email (or call) to the title company from your account...

How to find the next hot neighborhood in Nashville

Find Nashville's Next Hot NeighborhoodA few weeks ago, Realtor.com and Yelp got together to name the hottest hipster markets in the nation.

It’s not surprising that Nashville was in the top 50 markets.

And that area is…

37204 or the area surrounding the 12 South neighborhood.  

To come up with the list, Yelp looked for mentions of the word hipster in their data.  They combined that information with the strength of the market data from Realtor.com for the final rankings.  Only one zip code per metro area was included in the list.  

I was taken aback at the Hottest Hipster Market on the chart, Columbus, OH.  

It’s not the city that most people would think of as hipster.  

And that is part of the problem when trying to determine where the next hot, new area might be.  

By the time any town makes a list like this, you’ve likely missed the boat on the appreciation that comes with being one of the first to invest in an emerging market.  

Take 12 South as an example.  

If you wanted to ride the wave in that neighborhood, you are a decade too late.  

According to date from the Metro Property Assessors office, this area appreciated about 60% over the last four years.  That’s almost double the amount the entire city of Nashville appreciated in that same time frame.  

Getting in early is where the money is at.  However, it also comes with a set of risks that most of us are not willing to bear.  

Another option is to follow, who I call the “urban pioneers.”

Many times these risk takers are professionals who feel priced out of the emerging neighborhood that they want to live in.   And they decide to try to spark change in another location.  

Sometimes it...

This partnership guaranteed a win for Franklin

This partnership guaranteed a win for FranklinHere’s another win for affordable housing.

This development happens to be close to downtown Franklin, one of the most expensive places to live in Middle Tennessee. 

The development is a three-story building with thirty units priced between $152,950 and $167,950.  

And this is in an area where the sales price average for condos are $250,000 and single family homes are $475,000. 

It took a private-public partnership to pull it off, but not in the way you think.

The developer of the project is Community Housing Partnership, and non-profit corporation based in Williamson County.

They bought the land four years ago and then reached out to their network of partners to make this a reality.  

Pinnacle Bank, a regional bank headquartered in Nashville, provided the entire $4 million in funding.  No public funds were used to pay for the development.  

Williamson County contributed by waiving the privilege tax.  Jimmy Franks, of Old South Properties, is the contractor.  

It’s these type of public-private wins that we need to see more of in Nashville.  

Franklin Mayor Ken Moore said, “Community Housing Partnership has caused the first ripple in the water for other projects like this one.” 

“This is the first part of the momentum in moving forward in housing in our community. We will continue to work to help bring these projects forward an into the future.”

The project just broke ground and is expected to be completed in April of 2018.

It’s not surprising to me that it’s almost sold out.  

Only two units remain at this time.  

If you (or someone you know) wants to hear more about this affordable housing opportunity in Franklin, then hit reply and send...

This will change the most in 2018

This will change the most in the Nashville Real Estate Market in 2018Looking at the data and our market’s history, the real estate trends are lining up right where we expect them to be in September.  

Housing demand starts to take a back seat this time of year to school activities, football, getting your business ready for the fourth quarter and the holidays.  

So, we can expect that the inventory will continue to rise, prices will slightly pull back from their summertime highs and fewer homes will close from now through February.  

The last two years was a bit of an anomaly with the inventory, and I expect this year will align more with our historical trends.  

Going forward, I expect the biggest change from the previous two years will be price increases.  

I wrote about it last week in this article:

http://www.nashvillerealestatenow.com/blog/whats-your-home-worth-one-year-from-now/

We have been averaging close to 10% annual price increases for the last few years. And I predicted that was not going to continue in 2018.  

Not that we were going to take a huge hit to the top line.

Instead, I expected that the average increase would slightly decline to average 6-8% over the next year.

When you compare August 2017 to August 2016, you’ll see there is a 12.6% difference in median price.

For September 2017, the year over year difference was only 9%.  

I expect it price appreciation will continue to decline through February 2018 and stay a little lower from the remainder of the year.  This is good and a sign of a healthy real estate market. 

The last few years have been anything but normal.  And this can lead to questions and concerns...