$1M-plus home sales jump 27% so far in 2016

Friday, November 18, 2016, Vol. 40, No. 47

The number of homes sold increased 9.7 percent in October compared to October 2015, Greater Nashville Association of Realtors statistics show, reversing several months of negative growth.

Many in the industry had attributed that drop to low inventory, and more listings and sales in October would seem to bolster that argument.

As anyone watching the market would expect, median price rose for a single-family home rose to $261,000, compared to $230,000 a year ago, and the median condominiums price rose to $186,000 versus $171,737 a year ago.

Even with the recent increase in inventory, there were more houses on the market in October 2015 (12,894) than 2016 (11,785).

As has been mentioned before, this number may include houses that are under contract. Even so, there is a less than a four-month supply.

Looking at three different parts of town, those referred to in Realtracs as Area 1 (Crieve Hall and its surrounds), Area 2 (Green Hills, Belle Meade, Sylvan Park, and 12South) and Area 6 (East Nashville neighborhoods) for last week, there were some interesting trends.

In Area 1, there were 60 new listings in single-family homes and 41 closed sales. To comprehend the significance of these numbers, it is important to understand that most closings occur the last four or five days of each month.

The fact that the closed sales only trailed the new listings by 33 percent is noteworthy.

Therefore, I noted it.

In Area 2, the numbers were more drastic with 34 closed sales and 25 new listings, thereby devouring more inventory.

Area 6 was a push with 25 closed sales and 25 new listings in the past week based on Realtracs numbers.

For the three areas, there were 110 new listings and 100 closed sales. This will lead to higher prices in these areas as the inventory drops.

Another benchmark in the absorption of real estate sales pertains to the upper end. Through Nov. 11, 2016, there had been 186 sales in Davidson County of more than $1 million.

This year, through that same date, there have been 237, an increase of 27 percent.

These numbers reflect the volume in single family homes and are based on information obtained from Realtracs.

Just to the south, Williamson County had 177 homes sell for $1 million of more from Jan. 1 to Nov. 11 in 2015 and 204 for those same dates in 2016, according to Chandler Reports. Those numbers represent a 16 percent increase.

The trend of the past four years continues with more sales than new listings and higher prices citywide with more upper-end sales.

If rates stay low and Nashville’s traffic woes are resolved, the sky is the limit.

Sale of the Week

Another $3 million sale hit the books last week when listing agent Steve Fridrich, the golden boy of Nashville real estate, once again moved a mountain with the sale of 8451 River Road Pike off Charlotte Pike, about halfway between Nashville and Ashland City. The house is one of several located on 172 acres with the main structure boasting 5,933 square feet.

Fridrich notes this is the “Dozier House,” built in 1840.

It was known as an 1880s equivalent of a bed and breakfast as those traveling on the Cumberland River knew that they could stop for room and board on their river travels.

No stranger to this type of property, Fridrich said it is difficult to identify buyers who want to preserve a historic residence and undertake the requirements of maintaining 172 acres.

Fortunately, Bob McKeown with Benchmark Realty had just that buyer and negotiated a price of $3 million on the property that had been listed for $3,650,000.

The main structure has four bedrooms, three full bathrooms, two half bathrooms along with a breakfast room, formal living room, dining room and a bedroom with a walk-in closet that was added – of course – as walk-in closets were not the norm in the 1840s. Additionally, there is a guest house, another smaller home and a smattering of barns.

Due to the influx of people posing as high-end homebuyers, Fridrich required proof of funds prior to showing.

These days, proof of fund letters must be investigated to determine if the origins of the letters are legitimate. It is difficult to comprehend what perversion is satisfied by arriving in a strange town and masquerading as a person with the financial wherewithal to purchase a $2 or $3 million home.

But the lunatics are somehow drawn here like moths to the flames.

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