High-end sales take tumble in final quarter of stellar sales year

Friday, December 30, 2016, Vol. 40, No. 53

When January 2016 sales figures begin to roll in they will reflect another monstrous year in the Nashville real estate market. What might be lost in the numbers for the year in its entirety is the trend of the past 90 days, which will run counter to the year-end statistics.

There were 188 sales of single-family homes of $1 million or more in 2015, according to Realtracs, the multiple listing service for the Middle Tennessee area. Through last week, there were 233, pointing to another banner year.

But the in the last 90 days, the upper-end market performed about as well as the Titans played in Jacksonville.

There were 24 sales of $1 million or more over the past 90 days, which means that 209 of the 233 occurred prior to September 26. Therefore, only slightly more than 10 percent of the 2016 sales occurred in the last quarter.

During the same period last year, there were 46 sales of $1 million-plus, or a tad over 24 percent of the annual sales in the last quarter of the year.

To recap, about 24 percent of the sales of 2015 happened in the last quarter, reflecting a stable sales cycle. Yet in 2016, only 10 percent of the upper sales occurred in that quarter, indicating a slowdown in the Davidson market.

The upper-end condo market has experienced only two sales in the last 90 days, Realtracs reports. During the same period last year, there were 10 sales, more than half of the 19 sales of over $1 million for all Nashville condos in 2015.

With those results, it appears the year closed with momentum carrying into 2016. Or did it milk the market of its buyers? In 2016, there were only 12 sales in the million-dollar range.

There are now 13 active condo listings of $1 million or more with one of them having blown out a birthday candle and sporting 465 days on the market.

Alas, it has not been lonely, as it has had plenty of company at the top with another five listings accumulating more than 200 days on the market.

Coming interest rate increases provided an incentive for many to purchase and set the stage for a huge November, but those were obviously not in the $1 million-and-over range.

Even with the 24 percent bump in November, overall 2016 sales are up 6 percent higher than last year, based on figures released by Greater Nashville Realtors. In the days of what was considered a normal market, unit sales and prices alike increased from 3 to 6 percent year over year.

Many signals point to a normal market for 2017, and the buzz among Realtors is that the revolving doors have once again opened as listings are expiring and owners are opting for new agents and allowing the new agents to boast lower list prices than their predecessors.

The next 90 days will be interesting with a new college football champion crowned – or the ruling champ will be re-crowned – then a new president will be inaugurated, another Super Bowl will be played and Facebook people will request prayers, and prayers will be given.

By the end of March, the basketball madness will be in full swing extending into April, and the state legislature will have met in session and a new Congress will have been in office for 90 days. Mayor Barry and the Metro Council will be facing transportation challenges and more zoning requests.

Real estate sales will be up 3 to 6 percent, and the spring market will be in full swing.

Happy New Year.

Sale of the Week

Listing agent Joy Roper with Caden Roper Real Estate, LLC had a very merry Christmas after selling her listing at 110 Woodward Hills Place for $2,195,000. Closing after only 74 days on the market, the house has 9,721 square feet and was described as an “entertainer’s delight.” It features a “basement has lots of windows and a full kitchen for catering near the elevator.”

Roper notes there are five full bathrooms and five half bathrooms in the house, and that one of those is located in the garage. The master bath includes his and hers water closets. No shortage of opportunities in this house.

Also, the house has been recently repainted and is light and bright inside. Not to be outdone by the inside, the exterior has a “resort-style backyard with waterfalls, a large spa, and salt water infinity pool.”

The house was built with four fireplaces and a first-floor master suite and a four-car garage.

Fridrich and Clark Realty’s Anne McGugin, no stranger to upper-end sales, represented the buyer in this sale that will pad the 2016 stats as one of only 25 houses with less than three acres selling for over more than $2 million.

Richard Courtney is a real estate broker with Christianson, Patterson, Courtney, and Associates and can be reached at Richard@richardcourtney.com