Nashville Real Estate 2012 Third Quarter Market Update
Posted by Steve Jolly on Tuesday, October 16, 2012 at 1:24:30 PM By Steve Jolly / October 16, 2012 Comment
Nashville Real Estate Market Update Video
Hello! This is Steve Jolly with Nashville Real Estate Now.com! Thank you for stopping by today.
We are going to give you a quick update on Nashville Real Estate Market through the first three quarters of 2012 and compare them to 2011.
We also want to thank our Sponsor: FastRealEstateMarketing.com, who provides Marketing Solutions for Real Estate Professionals.
The data provided is courtesy of the Greater Nashville Association of Realtors. The first slide shows residential closings in the Greater Nashville Area over the first nine months of each year. As you can see, closings are up significantly over last year. We have had 19,400 residential closings for the first three quarters of 2012. During the same time period in 2011, we experienced 15,427 closings. This equates to a 25% increase in sales Year over Year. This is very significant and is great news for the Nashville Real Estate Market.
The closings in both years follow the expected trend as the second and third quarter are typically the most productive times of the year for Real Estate in Nashville.
The second slide shows the residential inventory in Greater Nashville over the first nine months of each year. This is another great sign for the Nashville Real Estate Market. Inventory is back to the level we had prior to the housing crisis. We currently have less than 18,000 homes on the market in the Greater Nashville Area. This is a 12.6% reduction in inventory, and this is one of the reasons that local home building starts are up this year.
Closings and Inventory are leading indicators in the housing market. This means that you will see trends in these areas before they are evident in other statistics.
The last slide shows the median price for a home sold for the first nine months of 2011 and 2012. Sales Price is one of the trailing indicators of the housing market, which means that the trends will show in this area later than in other areas. From the graph, you can see that we started and ended 2011 in approximately the same place, close to $165,000. It’s only been in the last seven months that sales price has gained any traction. In September, prices were 8% higher than in the same month last year. The difference was much closer for the rest of the year. In order for prices to continue to climb, we need the buyer confidence to remain high, Inventory to remain low and Interest rates to stay low. It is hard to say with any certainty what to expect for Nashville Real Estate in 2013, but it appears that we are on the right track.
Thank You again for tuning in. This is Steve Jolly with NashvilleRealEstateNow.com. Take Care!
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