The National Market Trends
The market is constantly changing and Diane O and Friends are dedicated to providing you with the lastest information from the National Assocation of Realtors. The National Assocation of Realtors updates their reports on the 23rd of each month. Check the bottom of this post for the monthly market update video.
January Existing Home Sales
The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of REALTORS®.
Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.
Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”
A parallel NAR practitioner survey shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.
Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.
“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.
All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.
The national median existing-home price3 for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010.
Middle Tennessee Market Trends
HOME SALES DECREASE IN FEBRUARY
NASHVILLE, Tenn. (March 9, 2011) – There were 1,134 home closings reported for the month of February, according to figures provided by the Greater Nashville Association of REALTORS. This represents a decrease of 13.3 percent from the 1,308 closings reported in February 2010. Year-to-date closings through February are 2,235, a 4.5 percent decrease from the 2,341 closings reported through February 2010.
“We will always be thankful when there are more than a thousand closings in a month, and even more so when circumstances make that more difficult to achieve. Stringent loan requirements, economic uncertainty and inclement weather made for a difficult February, and the 13.3 percent decrease in overall closings is a reflection of that,” said GNAR President Alice Walker. “But, with pending sales up from last month and the anticipation of warmer weather so people are more likely to get out and look at new homes, the overall outlook for the real estate market is beginning to improve.
“Another restraining influence on the current real estate market, here and everywhere, is the mixed messages coming from government on housing issues.Confusing discussions about the mortgage interest deduction, Fannie Mae, Freddie Mac and other housing programs are causing people, who are already cautious due to the economy, to be concerned and even more hesitant to make significant purchases. Our hope and expectation is that these issues can be addressed and resolved quickly, in a manner that truly supports homeownership, which is proven to be one of the country’s most significant supports for families, communities and economy.”
A comparison of sales by category for February is:
February 2010 FEBRUARY 2011
CLOSINGS 1,308 1,134
Residential 1,084 951
Condominium 148 112
Multi-Family 15 15
Farms/Lands/Lots 61 56
There were 1,416 sales pending at the end of the month, compared with 1,614 pending sales at this time last year. The average number of days on the market for a single-family home was 103 days. The median residential price for a single-family home during February was $169,900, and for a condominium it was $132,000. This compares with median residential and condominium prices of $159,900 and $149,950, respectively at this time last year.
Inventory at the end of February was 20,997 down from 23,159 in February 2010.
The current inventory of properties by category, compared to last year, is:
February 2010 FEBRUARY 2011
INVENTORY 23,159 20,997
Residential 14,040 13,010
Condominium 2,526 2,036
Multi-Family 437 349
Farms/Land/Lots 6,156 5,602
“Inventory is down from last year, but beginning to increase as is expected as we move into spring when more people begin their search for a new home,” added Walker. “There is already a good selection of homes available in the Greater Nashville market.”
Real Estate Glossary of Terms
There are lots terms and words which we in the industry use….and sometimes we forget that they are not common place for you. To make the translation easier we’ve included this glossary of terms. Please click here to be connect to the this glossary of terms.
When you are ready to Buy or Sell Property in Tennessee then you are ready for the Tennessee Real Estate Professionals Diane O and Friends. For more information about Diane O and Friends and our real estate services please fill out the online contact form or give us all call.
|
Office: 615-371-1544
Diane Cell Phone: 615-406-2184
Mandy Cell Phone: 615-477-6959
Fax: 615-472-7931
Follow Us Online