The numbers just don't support it in Nashville
Everyday there is a new story about a real estate bubble in the news.
It’s not the United States that most naysayers are worried about. It’s the rest of the world.
They are worried that the weak economic growth in China, Europe and Japan will drag the rest of us down with them.
I don’t buy into the narrative that we are close to a repeat of the housing crisis.
At least not in Nashville. The numbers just don’t support it.
And everything in real estate is local.
Just two days ago, Freddie Mac said that Nashville has the healthiest real estate market in the country. This is based on a mix of mortgage applications, payment to income ratios and nearly 100% of people current on their mortgage.
While the prices are going up, Nashvillians are buying smarter.
The local real estate numbers tell the same story as Freddie Mac.
The first (and last) time Nashville ever sold more than 4,000 homes in a single month was 10 years ago in June 2006. We are knocking on that door again and have a small chance to beat it in July.
June 2016 ended with 3,869 sales which is 1.7% more than the same month last year. Inventory at the end of June was 12,358 which is down from 13,823 in June 2015. The median price for a single family home is up 8.4% over last year to $260,148.
If anything holds us back from hitting 4,000 homes sold, it will be the lack of inventory. Based on Freddie Mac’s numbers the demand in Nashville is still high for home purchases, but the inventory is not there to fully satisfy it.
Stayed tuned to see if we hit the big number in July.