Here’s the latest Nashville Real Estate Market Report – January 2013
Nashville is very fortunate to have a recovering Real Estate Market. We are excited about the prospects of a great 2013.
December 2012 – Nashville Real Estate Sales
Nashville Real Estate had a strong finish in 2012. December 2012 had a 21% increase in sold units over the previous year with 2147. We ended 2012 with 26,097 homes sold, almost 27% higher than 2011. Nashville Real Estate Sales were also up more than 30% for the fourth quarter.
December 2012 – Nashville Real Estate Inventory
Nashville’s Real Estate Inventory is at a seven year low with 15,054 units for sale at the year’s end. This results in a total supply of just over 7 months of sales. I previously estimated that the supply of home would sink below 16,000 homes by the end of the year. The current supply of homes matches well with our demand. With the economic forces closer to being in sync, this provided an environment where prices can start rising.
December 2012 – Nashville Real Estate Average Price
Although, prices fluctuate throughout the year, the overall trend for 2011 was flat. See the red line on the chart below. The overall trend for 2012 was definitely positive.
In December 2012, the median sales price for a single family home in Nashville was $187,900. This is 11.5% greater than in December 2011 and 4% higher than the month before. The Average Days on Market also fell slightly to 82 days in December. We ended the year with more sales pending at 1857. The Median Condo price fell to just below $150,000.
2013 – Nashville Real Estate Outlook
Nashville’s outlook for 2013 continues to be hopeful. Our continued recovery this year is directly tied to these key factors.
- Tight Supply: We are at the lowest inventory of homes for sale in more than seven years and, it is already having an effect on price.
- Construction Starts: Local construction starts are on the rise. The nation’s largest home builder, D.R. Horton, is expanding into the Nashville Market in 2013.
- Low Interest Rates: The Fed recently announced that they would hold its key interest rate until unemployment drops to 6.5%. This will take at least one year and is expected to last into 2015.
- Job Growth and Relocation: The Nashville Job Market is expected to grow 8% over the next four years. Relocation into Nashville, especially with young adults, continues to grow.
- Debt Ceiling: We need to develop a responsible plan for our federal budget, federal spending and debt ceiling.
- Contracting Economy: For the first time since 2009, the economy shrank in the 4th quarter of 2012. The last 2 factors are my greatest concern and could have the most affect on the local market.
Do not forget: While homes will sell quicker in 2013, but they still need to be priced right.
The real estate data was provided by the Greater Nashville Association of Realtors, Middle Tennessee’s largest trade association for Real Estate Professionals.
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