Nashville Real Estate Update

May 6, 2010 by · Leave a Comment
Filed under: Tennessee 
Nashville Tennessee Skyline
Image by Exothermic via Flickr

The Nashville real estate market seems to be relatively strong compared to the rest of the country. The one potential weak spot is home prices, which were reported on by an April 8, 2010 article in the Nashville Business Journal. That piece found that “Nashville’s home prices aren’t done falling according to an analysis released Thursday by Fiserv Inc. The Wisconsin company said it doesn’t expect Nashville’s home prices to bottom out until the third quarter of 2011, and says prices won’t return to 2007 levels until 2018.” The article continued to note that “It based its report on historical trend data and forecasts based on the Fiserv Case-Shiller Indexes, which measure sales price trends for existing homes, as well as data from the Federal Housing Finance Agency and Moody’s”

Foreclosures amidst Nashville real estate have also been edging upwards, but that figure remains quite mild relative to the rest of the country. According to an April 7, 2010 article, also in the Nashville Business Journal, “Foreclosure rates in the Nashville area continued to rise in February, according to data released today by First American CoreLogic. According to the data, 1.44 percent of outstanding mortgages were in foreclosure in the Nashville-Davidson-Murfreesboro-Franklin area in February. That is an increase over February 2009, when the rate was 0.75 percent. The current rate is still below the national average of 3.17 percent.” The piece continued to note that “The mortgage delinquency rate also increased in February. According to First American Corelogic, 6.05 percent of mortgages in the area were 90 days or more delinquent…”

The volume of Nashville home sales, however, has increased impressively, according to an April 9, 2010 article in the Tennessean. The piece, written by Naomi Snyder, found that “Interest rates are at historic lows, the government is shoveling thousands of dollars in tax credits at people who buy homes, and the Nashville real estate market responded in March with a 22 percent increase in sales compared with a year ago. With a new sense of optimism, sellers are putting more homes up for sale here, buyers are signing more contracts, and homes are moving at a much brisker pace that’s likely to last at least until summer.”

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Tennessee real estate update

October 21, 2009 by · Leave a Comment
Filed under: Tennessee 

TNTennessee real estate may be in better shape than many other places in the United States, said several speakers at the Middle Tennessee State University Economic Outlook Conference on September 25, 2009, as reported by John Carney in the Shelbyville Times-Gazette.  Analysts believe that “Tennessee may recover more heartily than some other parts of the nation due to its educational institutions, a diverse and balanced economy, and new economic developments such as the Volkswagen plant in Chattanooga and the Hemlock Semiconductor plant in Clarksville.”  With an economy that continues to labor on and a workforce that continues to be employed, most people agree that Tennessee is well-suited for an upswing in the economy and the ensuing revival of the housing markets across the United States.

Unfortunately, two recently-released foreclosure reports show that real estate in Tennessee is experienced an increase in foreclosure rates, although the rate increases are beginning to slow locally, reported the Memphis Business Journal on October 15, 2009.  The article’s primary source, RealtyTrac, claimed that “the state’s homeowners received a total of 10,888 foreclosure notices, or one in every 250 households receiving a filing.”  Interestingly, Tennessee’s foreclosure rate in the quarter fell about 9.1 percent from third quarter 2008. It increased about 3.9 percent from the previous quarter.  While these numbers might be frightening for some, they represent improvement from previous measurements and are above and beyond the national averages which goes as comfort for many homeowners who are offering up Tennessee homes for sale.

A post on September 22, 2009 by Don Fenley of the Kingsport Times News claimed that about 36,000 people in the state of Tennessee had filed for the federally-sponsored home purchase credit by the middle of the month.  He says that “there’s no doubt the incentive has breathed some life into the struggling local, state and national housing market as did the cash for clunkers incentive for the automotive industry.”  However, he warns that housing is recovering and thus there is no longer a need to offer the breaks and that because such credits are a form of government spending, they have helped to create the $1.5 trillion deficit this year.