VOL. 41 | NO. 15 | Friday, April 14, 2017
Settle or stretch: Market’s a killer for the indecisive
The residential real estate battlefield is littered with settlers and stretchers scattered across the neighborhoods in the Nashville theater. Troops of families relocating have invaded by land and air and have besieged the entire city.
As they begin their strikes, they soon learn that their strategies have failed and most abort the missions, retreat and re-strategize. Even with the best intelligence and reconnaissance, buyers continue to underestimate the strength of the battalion of homes that comprise the Nashville market.
They are armed with data reflecting that sales in March are up 9.7 percent over the previous March and reports from the Greater Nashville Realtors stating inventory has been depleted by 10 percent over the same period last year.
This depletion is a result of four years of constant and consistent bombardment of sales from the invasion of earlier companies’ and regiments’ conquests and ensuing assimilation among the locals. The city has held its own in the four years’ war.
Although these crusades are well-funded, most of the buyers have budgeted to spend a portion of the proceeds from the sales of the properties they currently occupy in their respective homelands on the acquisitions in Tennessee. After securing the perimeters of their conquests, the buyer’s intent is to invest the remaining balance building a booty from their pillaging of the backward, slow-talking, naively courteous hillbillies that reside in the target, that being the valley known as Nashville.
After surveying the financial landscape, they realize they must stretch their budgets considerably to be able to purchase anything remotely similar to the lands they have forsaken in their quest for their newfound Xanadus.
Armed with only their checkbooks and credit rating, the stretchers deplete their loot and engage in a larger than anticipated mortgage in order to buy in the region.
Admittedly, the word Xanadu may have been hyperbolic. The properties these stretchers have in their sights are not the ideal properties that they had envisioned based on their initial intel. There is less square footage, the location has been re-targeted to an area farther from the drop zone for the children, and they may be a barracks or latrine or two short of the mission’s goals.
They soon learn that they must settle for something less than they hoped to be able to live among the native Nashvillians who bought their homes for a few beads and sequins several generations ago.
By stretching their budgets and settling on a compromised locale and structure, the strife is o’er, the battle done. The victory of life is done. Happy Easter, everyone.
Sale of the Week
The Great Recession took a major toll on the Nashville market. With the exception of areas such as 12South and its neighbors, some developments took the brunt of the financial bombing, and the condominium project at 5th and Main was among the casualties.
To the development’s credit, it has risen from the ashes and is now as stable as any condominium in the city, as evidenced by Grant Hammond’s listing in the 5th and Main complex.
Hammond, who knows as much about the urban core real estate as anyone in the business, listed 2115 Yeaman Place, #203 at 5th and Main, for which records the owner paid $132,000 in 2012 for the one-bedroom, one-bathroom, 770-square-foot condo, records show.
Hamond described the condo as a “sleek contemporary condo with the coveted courtyard view. Sunbathed open floor plan with stained concrete floors with a European inspired kitchen, large master suite, with clean lines.” He added a Hammondesque description, “The shower has funny instructions.”
Scott Cornett, a broker with PARKS represented the buyer. Like Hammond, Cornett is one who has been trumpeting the downtown and Gulch area for years.
Cornett and Hammond teamed to sell the unit for $256,500 or $330 per square foot. Surviving a recession has its benefits as the owner had purchased the unit for $125,900 and, according to CRS, borrowed $132,000, as perhaps the purchase price and the closing costs were financed. In any case, she did well.
Overall, condo sales were up by 15 percent this March compared to March 2016 and, in keeping with the overall market, inventory among condos is down 10 percent.
Based on the information provided by the Greater Nashville REALTORS, the median condo price was $199,900, compared to $181,894 last year.
All around Nashville, the Condo’s price has risen today. Allelujah. Happy Easter.
Richard Courtney is a real estate broker with Christianson, Patterson, Courtney, and Associates and can be reached at email@example.com.