GREATER NASHVILLE HOME SALES CONTINUE INCREASE

First-time homebuyers taking advantage of tax credit continue to stimulate sales

There were 1,973 home closings reported for the month of November, according to figures provided by the Greater Nashville Association of REALTORS®.  This figure is up 58.7 percent from the 1,243 closings reported for the same period last year.

Year-to-date closings through November are 19,571, a 14.3 percent decrease from 2008 when 22,824 closings were reported through November.

“The number of home closings being so high in November is due largely to the first-time homebuyer tax credit. No one knew whether the original deadline would be extended, so many people chose to act on the opportunity to purchase a home,” said GNAR President Mike Nichols.  “The high amount of activity at the first-time buyer level is likely to continue and it may now help create some move-up activity since the tax credit has now been expanded beyond just first-time buyers."

"The impact of these home sales goes well beyond the actual real estate transaction," Nichols continued. "Those who purchase homes are very likely to make other purchases for their homes like appliances, furniture, floor and wall coverings, lawn equipment and other decoration and improvement items. That is great news for the local and regional economy."

A comparison of sales by category for November is:

There were 1,742 sales pending at the end of the month, compared with 1,267 pending sales at this time last year.  The average number of days on the market for a single-family home was 82 days.

The median residential price for a single-family home during November was $158,500, and for a condominium it was $144,400.  This compares with last year’s median residential and condominium prices of $165,500 and $150,000, respectively.

Inventory at the end of November was 22,528, down from 23,647 in November 2008.  The current inventory of properties by category, compared to last year, is:

 “Inventory is now down approximately four percent from where it was last year and there are a few key trends to notice," said Nichols. "Residential inventory is now at about a seven month supply, which is much more in balance than what we've experienced throughout the year. And even though overall inventory remains high, representing an 11 to 12 month supply, the levels have greatly improved when compared to the past two years."

The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners.  REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.

©Copyright 2007-2011 GNAR.