Jan. 7, 2021

December 2020 Market Update

Nashville housing market update

Despite Uncertain Times, 2020 Housing Market Thrived

NASHVILLE, Tenn. (Jan. 7, 2021) – Final numbers for 2020 indicate there were 44,850 homes sold in the region, compared to the 42,356 closings in 2019, the total sales for 2020 were up 6 percent.

Home sales hit 4,252 closings for December, according to data provided by Greater Nashville REALTORS®. This figure is up 22 percent from the 3,482 closings reported for the same period last year.

Fourth quarter closings were 12,310 for the Middle Tennessee area. That total is an 18 percent increase from the 10,456 closings during the fourth quarter of 2019.

“The figures we are sharing today remind us that even during our most challenging times, a home remains an important and essential part of everyone’s life,” said Brian Copeland, Greater Nashville Realtors president. “A thriving real estate market strengthens our local economy. We must continue to be sensitive to the impact of civil unrest, COVID -19, tornadoes and the Christmas Day explosion have made on our community. 2020 has proven that during times of uncertainty, home and family remain our most cherished safe haven. Regardless of the challenges that lie ahead, Realtors will continue to safeguard the foundation of our Greater Nashville community,”


A comparison of sales by category for December is:
  2019
2020
CLOSINGS 
3,482 4,252
Residential 
2,880 3,445
Condominium
445 537
Multi-Family 22 22
Farms/Land/Lots 135 248
 
A comparison of sales by category for the fourth quarter is: 

  2019
2020
CLOSINGS 
10,456 12,310
Residential 
8,702 10,041
Condominium 1,229 1,519
Multi-Family 72 75
Farms/Land/Lots 453 675
 
A comparison of sales by category year-to-date is:  
  2019
2020
CLOSINGS 
42,356 44,850
Residential 
35,305 37,170
Condominium
4,828 5,130
Multi-Family 297 257
Farms/Land/Lots 1,926 2,293
 
There were 2,622 sales pending at the end of December, compared with 2,114 pending sales at this time last year. The average number of days on the market for a single-family home was 26 days.

The median price for a residential single-family home was $345,000 and for a condominium it was $245,000. This compares with last year’s median residential and condominium prices of $324,000 and $269,900, respectively.

Inventory at the end of December was 5,722 down from 9,365 in December 2019.

The current inventory of properties by category, compared to last year, is:
  2019
2020
INVENTORY 9,365 5,722
Residential 6,612 3,543
Condominium 744 840
Multi-Family  40 58
Farms/Land/Lots 1,969 1,281
“Many people continue to choose the Greater Nashville area as their home. Our low cost and high quality of living will continue to be a huge selling point for our community. With inventory at historic lows, now is an excellent time for homeowners to explore their selling options with a Realtor,” Copeland added.

The data collected for this release represents nine Middle Tennessee counties: Cheatham, Davidson, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson.
*SOURCE: Greater Nashville Realtors Association.
Posted in Market Updates
Jan. 2, 2021

Why Selling Your House on Your Own is a Mistake in 2021

Home hands fsbo

There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner (FSBO), it’s critical to consider the following items.

1. Your Safety Is a Priority

Your safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your potential buyers.

2. A Powerful Online Strategy Is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step 43% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 97%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house.

3. There Are Too Many Negotiations

Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who solely represents the best interest of the buyer
  • The inspection company, which works for the buyer and will almost always find challenges with the house
  • The appraiser, if there is a question of value

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment. You need someone who’s working with lenders every day to guarantee your buyer makes it to the closing table.

5. FSBOing Is Becoming More Difficult from a Legal Standpoint

The documentation involved in the selling process is growing dramatically as more and more disclosures and regulations become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

6. You Net More Money When Using an Agent

Many homeowners think they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance a bidding war will take place, potentially driving the price higher, too.

Bottom Line

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, reach out to a local real estate professional to discuss your options.

Dec. 3, 2020

A Season for Selling

Your House May Be High on the Buyer Wish List This Holiday Season

 

Gifted House

 

Around this time each year, many homeowners decide to wait until after the holidays to sell their houses. Similarly, others who already have their homes on the market remove their listings until the spring. Let’s unpack the top reasons why selling your house now, or keeping it on the market this season, is the best choice you can make. This year, buyers want to purchase homes for the holidays, and your house might be the perfect match.

Here are seven great reasons not to wait to sell your house this holiday season:

1. Buyers are active now. Mortgage rates are historically low, providing motivation for those who are ready to get more for their money over the life of their home loan.

2. Purchasers who look for homes during the holidays are serious ones, and they’re ready to buy.

3. You can restrict the showings in your house to days and times that are most convenient for you, or even select virtual options. You’ll remain in control, especially in today’s sellers’ market.

4. Homes decorated for the holidays appeal to many buyers.

5. Today, there’s minimal competition for you as a seller. There just aren’t enough houses on the market to satisfy buyer demand, meaning sellers are in the driver’s seat. Over the past year, inventory has declined to record lows, making it the opportune time to sell your house (See graph below):

12 mo housing supply

6. The desire to own a home doesn’t stop during the holidays. Buyers who have been searching throughout the fall and have been running into more and more bidding wars are still on the lookout. Your home may be the answer.

7. This season is the sweet spot for sellers, and the number of listings will increase after the holidays. In many parts of the country, more new construction will also be available for sale in 2021, which will lessen the demand for your house next year.

Bottom Line 

 

More than ever, this may be the year it makes the most sense to list your house during the holiday season. Contact us today and together we will determine if selling now is your best move.

Nov. 16, 2020

Nashville October 2020 Luxury Market Report

Nashville 13 month luxury market report

1 The luxury threshold price is set by The Institute for Luxury Home Marketing. 2Sales Ratio defines market speed and market type: Buyer's < 14.5%; Balanced >= 14.5 to < 20.5%; Seller's >= 20.5% plus. If >100% MLS® data reported previous month’s sales exceeded current inventory

Nashville luxury home market report3 Square foot table does not account for listings and solds where square foot data is not disclosed. 4Data reported includes Active and Sold properties and does not include Pending properties.

 

Nashville Detached Single-Family Luxury Home October 2020 Summary

  • The Nashville single-family luxury market is a Seller's Market with a 48% Sales Ratio.
  • Homes sold for a median of 99.20% of list price in October 2020.
  • The most active price band is $1,000,000-$1,099,999, where the sales ratio is 114%.
  • The median luxury sales price for single-family homes has increased to $1,000,000.
  • The median days on market for October 2020 was 8 days, down from 13 in September 2020

*SOURCE:  The Institute for Luxury Home Marketing

 

Posted in Market Updates
Oct. 6, 2020

Why Selling This Fall May Be Your Best Move

Sell your home in the Fall

 

If you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make your decision to sell this fall an easy one.

1. Buyers Are Actively in the Market

ShowingTime, a leading real estate showing software and market stat service provider, just reported that buyer traffic jumped 60.7% compared to this time last year. That’s a huge increase.

It’s clear that buyers are ready, willing, and able to purchase – and they’re in the market right now. In many regions of the country, multiple buyers are entering bidding wars to compete for the home they want. Take advantage of the buyer activity currently in the market so you can sell your house in the most favorable terms.

2. There Are Not Enough Homes for Sale

In the latest Existing Home Sales Report, the National Association of Realtors (NAR) announced that there were only 1.49 million units available for sale. That number was down 18.6% from one year ago. This means in the majority of the country, there aren’t enough homes for sale to satisfy the number of buyers.

Due to the health crisis, many homeowners were reluctant to list their homes earlier this year. That will change as the economy continues to recover. The choices buyers have will increase going into the new year. Don’t wait until additional sellers come to market before you decide to make a move.

3. The Process Is Going Quickly

Today’s ultra-competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to the latest Origination Insights Report from Ellie Mae, the time needed to close a loan is just 49 days.  In Nashville, most get done in 30 days!

4. There May Never Be a More Important Time to Move

You’ve likely spent much of the last six months in your current home. Perhaps you now realize how small it is, and you need more space. If you’re working from home, your children are doing virtual school, or you just need more space, your current floor plan may not work for your family’s changing needs.

Homebuilders are beginning to build houses again, so you can choose the exact floor plan to match what your family needs, and you can make sure the outdoor space is what you want too.

Bottom Line

The housing market is prime for sellers right now, so reach out to a local real estate professional to get the process started this fall. If the timing is right for you and your family, the market is calling your name.

July 31, 2017

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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates