Home sales are UP! An MSNBC.com report shows that the increase in sales marks the greatest month of sales in the past three years. November 2009 real estate sales were boosted by government backed incentives and falling prices. The National Association of REALTORS website reports that the number of American families that have taken advantage of the Tax Credit for buyers is estimated at 2.0 million. November’s sales figures rose 44 percent and the seasonally adjusted gross would be 6.54 million homes a year, just below the 6.55 million homes/year mark calculated from February 2007.
So how does Nashville and surrounding counties real estate market compare to the national trend? The chart below shows the YTD Real Estate closings in the Middle Tennessee Market including 30 counties and deducting commercial transactions.
The chart shows that Middle Tennessee is following the National trend. Real Estate Sales were up 48% in November 2009 compared to November 2008. October 2009 was the first month in 2009 that had an increase in sales (up 18% from October 2008) from the same month the year prior. That broke a 17 month trend of decreasing transaction count when compared to the same month the year prior, al the way back to April 2008. So it appears clear that the federal stimulus package (1st time home-buyer tax credit) has had a direct effect on sales, as the original deadline for the tax credit was November 30th. The tax credit was recently extended and also expanded to include homeowners that want to sell and buy another home as long as they have resided in their current home for five of the last eight years. Lawrence Yun, predicts that the final count of families that take advantage of the tax credit to be about 4 million, so if you plan to place your home on the market for sale the time to do so is now. The rates are near record lows, the pricing on homes is reasonable and the expanded tax credit deadline is the end of April. If you would like a personal consultation on how the tax credit could benefit you please call The Grumbles Team, of Exit Realty of the South.
The Nashville Business Journal reported that the homes prices are declining compared to a year ago but that compared to the prior month were stabilizing. The drop from a year ago is heavily impacted by the number of distressed sales including foreclosures and short sales. The Grumbles Team constantly monitors the national and regional real estate markets to see how it impacts your decision to buy or sell a home. The National Association of REALTORS reports that there is a 6.5 month supply of homes, down from 7.0 months, nationwide at the current absorption rate. We analyzed and found that in Williamson County there is 9 months of supply and it has been declining for the last four months. So just as in all economic situations when there is excess supply, the prices fall. We will continue to monitor this absorption rate to see that when the market becomes a seller’s market again and prices begin to rise.
The Grumbles Team is always on top of the real estate market in Brentwood, Franklin, and surrounding areas, focusing on golf communities. To learn the absorption rate for your city or zip code call us to schedule a market analysis review. We can be reached at 615-354-3979.
The Grumbles Team is our family serving your family with your real estate needs in Franklin, Tennessee 615-587-5843.
EXIT Realty of the South | 1227 Lakeview Dr. Suite 1 | Franklin | TN | 37067 | 615.550.5555
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