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VOL. 44 | NO. 1 | Friday, January 3, 2020

2009, 2019 markets vastly different in Nashville area

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What a difference 10 years can make. In the music world, the 1950s saw the emergence of Elvis, Buddy Holly and rock ’n’ roll, which gave way to the British Invasion in the 1960s and disco and glam rock in the 70s and 80s.

In the country music world, the class of 1986 was legendary with Randy Travis, Steve Earle and Dwight Yoakum all coming onto the scene that year. In the 1990s, Garth Brooks, Alan Jackson, Shania Twain and Reba McIntire began to dominate the charts.

In real estate, the difference in 2009 and 2019 could not be more striking. The same could be said for life in Nashville. One stark contrast was evident in the Christmas shopping season.

In 2009, shops announced thy were staying open until midnight in hopes of squeezing a few more dollars out of the depleted economy. This year, numerous stores closed early the day before Christmas Eve and many are staying closed for several days after Christmas. Memories are short, thankfully.

In the local real estate market, the Great Recession had taken its toll. The next 10 years, however, would prove to be the best years in the city’s history with values ballooning remarkably.

In Belle Meade, the lowest sales price for a property was $575,000 in 2009. That jumped to $675,000 in 2019 as a few of the smaller homes remain. The most staggering statistic is that the highest sale in Belle Meade in 2009 was $1,661,671. In 2019, there were 28 sales of more than that number in the prestigious neighborhood with the highest sale price hitting $5,250,000, more than three times the highest sale in 2009.

The Nations did not really exist in 2009. It had been renamed Historic West Towne in an effort to get anyone to consider living there. There were, however, nine sales, ranging from $40,000 to $215,000. Now, proud to be known as the Nations, 169 properties sold ranging from $215,000 – the same number as the highest sale 10 years ago – to $650,000, again over three times the high in 2009.

Sylvan Park showed a jump in the most expensive sales from $539,000 to $1,050,000. The lowest-priced home in that area went for $149,000 in 2009 and $284,500 this year.

East Nashville had 1,096 sales in 2009 but doubled that with 2,170 in 2019 with the low-price mark rising from $11,500 in 2009 to $51,000 in 2019.

On the East Side, the top sale 10 years ago hit $550,000, a huge number at the time. In 2019, there was a sale of $1,415,000 for one home. The tornado of 1998 had led to a cash infusion that had increased values significantly before the Recession.

Green Hills had 115 sales in 2009 with a low of $200,000 and a high of $1,825,000. In 2019, with 192 sales, the range was $277,500 to $2,891,000.

Woodbine has been the new hot spot for flippers as of late. There were 56 sales in 2019 compared to 20 in 2009. The 2009 low was $65,000, compared to $110,000 in 2019. On the highest sale side, prices increased from $233,000 to $552,500.

Crieve Hall showed modest growth in overall sales with 81 in 2009 and 93 in 2019, but made up for it with prices jumping from $116,000 to $235,000 on the low side and $336,000 to $850,000 on the high side.

Next week, we will visit condos.

Sale of the Week

Illume Nashville, 920 South Street, began closing a few weeks back and has since closed 31 units with another 33 under contract, according to the Multiple Listing Service. Realtracs lists five as active, meaning they remain for sale.

Described by veteran broker Martha Montiel-Lewis of Compass RE as “highly anticipated STR eligible Illume Nashville,” which translates to “Yes, these are short-term rentals pure and simple. Airbnb is our friend. Bring on the bachelorettes and make tons of money.”

The homeowners’ associations of some of the developments in Nashville are amending their bylaws to prohibit short-term rentals – some have banned any type of renting – and Metro Council has passed some bills regulating the industry. Then the state Legislature got in on the act and tried to govern how Nashvillians handle their properties. Montiel-Lewis’s comments eliminate any confusion.

Having sold hundreds if not thousands of condominiums, and many of those in the STR category, Montiel-Lewis knows how to market condos. She notes the Illume products include “clean lines, airy interiors with abundant light, and carefully curated finishes.” That means, “They are small, but you wouldn’t know it once you get in” with all of that light and air flowing.

Just to be sure people understand how big they are, she notes there are “10-foot ceilings with massive windows providing abundant light.” Massive, abundant, airy, high ceilings and clean lines can make a condo look enormous.

Last week, unit 123 sold for $399,000 or $504 per square foot and it included 792 square feet which is huge as one-bedroom condos go these days. Some of the Bristols, Icons, and 1212 check in at 550 to 700 square feet and do not have the 10-foot ceilings.

Unit 123 listed for $387,000 and sold for the $399,000, demonstrating there is significant demand from investors for these cash cows. Money pours in from across the country and around the globe for these investments.

Illume Nashville is in a neighborhood described as “Gulch View.” Once the actual Gulch was built out, the next best thing is a view of the now popular development that only took about 15 years and hundreds of millions of dollars to become popular.

Montiel-Lewis wrote that Illume Nashville has an “outstanding pool, fitness center and grilling area.” Party on, Garth.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at richard@richardcourtney.com.

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