Just Released! Nashville Real Estate Market Report - March 2013
Nashville is blessed to have a recovering economy and an active real estate market. If you are considering selling your home this year, this would be a great time to contact your agent.
February 2013 – Nashville Real Estate Sales
We are off to a great start in 2013. February Closings in Nashville are up more than 14% over the same month in 2012 and are 35% higher than in February 2011. What a difference a few years make!
If these trends hold up through the summer time, Nashville Real Estate sales could peak this year at 3,000 units sold in August and end the year with 2,500 sales in December. The last time Nashville experienced more than 3000 sales in one month was August 2007.
February 2013 – Nashville Real Estate Inventory
Nashville’s Real Estate Inventory has climbed slightly since the end of 2012; however, we are low in many areas for the demand from buyers. Overall, we have an eight month supply of homes at the current sales rate. As the sales rate increases through the summer, we could see inventory fall below the six month level and prices rising.
February’s inventory is 15% less than in the same month last year. Inventory is typically rising this time of year, but is held flat by the increased demand.
Nashville needs more homes on the market to keep up with the current demand. New home inventory will not be able to make up the difference. Most builders in this area are just starting to acquire property to develop and may not be able to make an impact for a few years.
February 2013 – Nashville Real Estate Average Price
2012 in Nashville was the year that we turned the corner on prices. The trend was definitely positive. 2013 could be the year we move to a seller’s market and see consistent price appreciation.
It is not uncommon for the price to drop from December to January. The phenomenon is driven by the large number of sales at the end of every year. The median price for single family homes in February 2013 was nearly nine percent higher than the same month in 2012. The average Days on Market was holding steady at 84 days.
2013 – Nashville Real Estate Outlook
Nashville’s outlook for 2013 continues to be positive. Keep an eye on these key factors that could affect our current recovery.
• Inventory: Nashville is at a seven year low in the inventory of homes for sale. If the inventory continues to stay low through the summer, I expect to see additional upward pressure on prices.
• Money Supply: Interest rates are expected to stay low into 2015. FHA loans are getting significantly more expensive this year. This increased cost may affect the entry level home market in Nashville.
• Politics: We have the potential to have two more political showdowns this year. The current continuing resolution for the Federal budget expires in late March. The federal government is expected to hit the debt ceiling again in May. Both of these issues could have an affect on the economy and real estate market if they turn into a political stalemate.
• Contracting Economy: For the first time since 2009, the economy shrank in the 4th quarter of 2012. The political issues and the national economy are my greatest concern today.
The real estate data was provided by the Greater Nashville Association of Realtors, Middle Tennessee’s largest trade association for Real Estate Professionals.
What Do You Expect Out of the Nashville Real Estate Market in 2013?