VOL. 41 | NO. 37 | Friday, September 15, 2017
2017 has chance to shatter 2006 sales record for area
As you might recall, the year 2006 holds the record for the most unit sales in residential real estate for any year since the Greater Nashville Realtors have been reporting sales figures.
That year, 40,056 properties were sold in the area. To provide some perspective, there were 38,954 last year in what most would consider the most rabid market of all time.
Even those practicing real estate professionally in 2006 feel the past few years felt more frenetic than 2006 and are surprised to learn that 2016 and 2015 take a back seat to 2006.
Speaking to a leadership group at the Greater Nashville Realtors, former mayor Bill Purcell stunned many in attendance when he revealed that statistic, a number that was achieved during his reign.
This year, Mayor Purcell might play Hank Aaron to the real estate sales year equivalent of Barry Bonds. Many have used the cliché that the market is “on steroids,” and while that description may have no relevance in the comparison to the aforementioned baseball players, it appears that there may be a new home selling king.
Recently, the Greater Nashville Realtors reported August sales of 3,883 properties, an increase of 3.8 percent compared to August 2016 and more than the 3,772 reported in 2006.
For the year, there have been 27,248 sales, an increase of 5.2 percent compared to last year’s, but most important to those watching the chase, 2017 year-to-date numbers still trail the 2006 of 27,294. But the gap is closing with a mere 46 sales separating the two years. This could go down to the wire.
While it might be a bit early for Purcell to draft a concession speech, the number of pending sales loom. There were a startling 3,939 sales pending at the end of August versus 3,447 last August.
In September of 2006, there were 3,445 closed sales, a number that should be shellacked with nearly 4,000 pending sales.
Therefore, look for the Purcellian era to come to a close. As Hank Aaron and others have said, “Records were made to be broken” and Barry Bonds will never get into the baseball Hall of Fame, anyway.
The good news is that the area is experiencing robust sales. Scott Troxel, president of the Realtors hailing from Nashville, says August 2017 was “the best August in the region in over a decade.”
People say “decade” more than they used to, and writers end sentences in prepositions more these days, a situation barely averted.
The always-astute Troxel says “August was a particularly notable month for condominiums,” adding Nashville-area condos enjoyed their highest median price ever. With inventory down another 1,000 units, he adds, “We look expectantly to the building of new units as a way to alleviate some of the strain of first-time homebuyers.
His concerns are that the reduction in inventory couple with rising prices are building barriers and obstacles for those in the market for the first time. Condo prices rose from $189,000 to the $207,000 that Troxel mentioned. Single-family homes hit a median price of $285,000, a sharp jump from last year’s $253,000.
Making these numbers all the more amazing is the fact that lending standards are much more rigid than they were in 2006. Stay tuned for more on the Chase next month.
Sale of the Week
Buyers occasionally wander into Tennessee from oceanfront communities and are frustrated with landlocked homes, feeling trapped with no means of escape. Perhaps, in light of the recent catastrophic events, the need to occupy land near water might have subsided.
Fortunately for those aquaphiles, the city has a couple of lakes along with the winding Cumberland River. Peninsula Pointe is so called because it actually is on a peninsula just across a cove – about a mile, as the gull flies – from Nashville Shores.
The house at 4817 Peninsula Pointe Drive in Hermitage sold for $308,000 last week by listing agent Greg Stroud, an agent with Vision Realty Partners and a person with no tolerance for artificial substitutes.
Twice in his description of the home he proclaimed the cabinets were constructed of “real wood” and was quick to share that there are ‘no carpets in the house,” noting the flooring is oak hardwood. No plastic laminate in this home.
Carmen Klapper of Scout Realty represented the buyer who should worry more about termite infestation than carpet cleaning as these home owners are living atop a lifetime supply of suppers for the pesky pests.
With 2,481 square feet and all of the bedrooms on the first level, the home fits all of the demands for today’s market including granite counter tops, tile galore and “many upgrades and amenities.” Did I mention the real wood?
Richard Courtney is a real estate broker with Christianson, Patterson, Courtney, and Associates and can be reached at email@example.com.