Category: Red News

Homes sales set blistering pace in January

Michelle Willard, mwillard@dnj.com 4:13 p.m. CST February 9, 2016

 

MURFREESBORO – Middle Tennessee’s real estate market continued the blistering pace set in 2015 in January, according to multiple industry reports.

January saw a 14 percent increase in closed home sales from January 2015, according to the Red Report that tracks home sales in Rutherford, Davidson, Wilson and Williamson counties.

The Greater Nashville Association of Realtors reported similar numbers for its nine-county region that includes Rutherford County.

“As expected, 2016 home sales picked up where 2015 left off,” GNAR President Denise Creswell said. “Closings were up almost 10 percent over January of 2015. Beginning the year with over 2,000 closings is an encouraging start.

“The last time our region saw a January with more than 2,000 closings was 2007. Our January numbers have consistently increased since 2010,” she said.

Overall, GNAR’s region experienced 2,167 home closings in January. This figure is up 9.7 percent from the 1,976 closings reported for the same period last year.

In Rutherford County, 305 home sales closed for a 12 percent increase over the same month last year. Sale price was also up 5 percent over January 2015 to $214,514.

“Middle Tennessee continues to do better than most other markets, so it will be interesting to see how the national and local markets play out this year,” said Steven Dotson, president of Red Realty and issuer of the Red Report.

For the nine counties covered by GNAR, the median residential price for a single-family home during January was $242,668 and for a condominium it was $179,900. This compares with last year’s median residential and condominium prices of $215,000 and $172,250, respectively.

MURFREESBORO — Rutherford County home sales increased 10 percent in 2015 over the previous year, according to the Red Report.

“It has been nearly a decade since our real estate market has seen this much activity and positive growth,” said Denise Creswell, president of the Greater Nashville Association of Realtors.

The GNAR region, which includes Davidson and eight surrounding counties, ended the year with 36,873 units closed, according to data from the association.

“Staying on a sustainable growth track, coupled with continued good reports on the economy and job market should make this year another successful and favorable one for both current and potential homeowners,” Creswell said.

Middle Tennessee real estate ended on a high note with sales in Rutherford County up 23 percent in December over November, according to the Red Report. Davidson County sales were up 38 percent.

The GNAR coverage area had 3,194 closings during the month of December, which is a 12.5 percent increase from the 2,838 closings reported for the same period in 2014.

Fourth quarter closings are 8,621 for Greater Nashville. That total is a 3.5 percent increase from the 8,327 closings during the fourth quarter of 2014.

Final numbers for 2015 show 36,873 homes sold in the region. Compared to the 33,269 closings in 2014, the final closing numbers are up 10.8 percent.

“The large 33 percent bump up from November to December could be attributed to the ‘Know Before You Owe’ initiative that pushed many November closings into December as everyone had a learning curve adjusting to the new regulations and timelines,” said Steven Dotson, president of Red Realty and issuer of the Red Report.

The robust home sales and lack of supply in 2015 also pushed home prices back to pre-recession levels in most of the midstate, Dotson said.

In Rutherford County, average sold price was up by 15 percent in 2015. Davidson County as a whole saw a similar bump with closed prices increasing 10 percent. Wilson County  sold prices only increased 1 percent, and Williamson County prices actually fell 3 percent from 2014 to 2015.

In the GNAR area, the median price for both residential properties and condominiums increased during December.

For a single-family home it was $242,945, and for a condominium it was $194,183. This compares with last year’s median residential and condominium prices of $213,500 and $172,999, respectively.

The four-county region saw an increase in list versus closed price from 98 percent in 2014 to 98.61 percent in 2015, Dotson said.

While the area’s persistent lack of supply forced up prices, low inventories might also depress sales in 2016, Dotson said.

“If we can increase inventories, I feel 2016 could be higher than 2015. If we don’t increase inventories, then I see 2016 being close to 2015,” he said.

Data indicates that buyers are waiting on the sidelines for homes to come on the market, Dotson said.

“With prices increasing and days on market shrinking, it tells us there is demand that we don’t have the supply for,” Dotson said.

And the rising prices make investing in developing more lots worthwhile.

“So the near term looks pretty good to me for a healthy real-estate market to continue in Middle Tennessee,” Dotson said.

Contact Michelle Willard at 615-278-5164, on Twitter @MichWillard or Rutherford County Business News on Facebook.

 

2015 YTD Closings 10% Higher than 2014, but November Closings 8% Lower than Last November…

DOWN 8% November 2015 vs November 2014 (annual monthly comparison)
DOWN 20% November 2015 from October 2015 (one month change)
UP 10% Year to Date Closings- 2015 vs 2014
Total Inventories are down 10% for November 2015 verses November 2014.

 

Year to Date Prices and Closings continue higher than last year…

Year to Date: Total 4 counties closings up 10%.

November 2015 vs November 2014 Closings down 8%.

Screen Shot 2015-09-10 at 10.17.33 AM

Rutherford Closings  DOWN 1%

Average Closed Prices UP 9%

Average Sales Price – $211,325

Screen Shot 2015-09-10 at 10.19.33 AM

Williamson Closings DOWN 11%

Average Closed Prices UP 2%

Average Sales Price – $456,046

Davidson Closings DOWN 4%

Average Closed Prices UP 11%

Average Sales Price – $298,158

Screen Shot 2015-09-10 at 10.20.15 AM

Wilson Closings DOWN 25%

Average Closed Prices UP 2%

Average Sales Price – $263,066

 

CLOSINGS

  • Rutherford Closings down 21%
  • Williamson Closings down 16%
  • Davidson Closings down 24%
  • Wilson Closings down 13%
  • Total 4 Counties are down 20%.

PENDED

Pendings appear to be showing the season changes we expect

  • Rutherford pended 371 which is down 18%
  • Williamson pended 357 which is down 2%
  • Davidson pended 775 which is down 11%
  • Wilson pended 199 which is down 1%

Back in time…

November 2006 vs November 2015 YTD

  • 2015 Closings are 7% lower
  • 2015 Closed Prices are 23% higher at $311,306 & 8% higher than 2014.
  • 2015 Inventory is 21% lower at 6,130
  • Days on Market for 2015 are 56 Days vs 59 Days in 2006. 2014 was 67 Days.
  • Closed Prices for 2015 are 98.62% of List Prices, 2006 was 100.56% & 2014 was 98.01%

Download a full PDF version here ==> RedReport-pdf-11-15

2015 YTD Closings 12% Higher than 2014, October Closings 1% Lower than Last October & 13% lower than September.

DOWN 1% October 2015 vs October 2014 (annual monthly comparison)
DOWN 13% October 2015 from September 2015 (one month change)
UP 12% Year to Date Closings- 2015 vs 2014
Total Inventories are down 10% for October 2015 verses October 2014.

 

Year to Date Prices and Closings continue higher than last year…

Year to Date: Total 4 counties closings up 12%.

October 2015 vs October 2014 Closings down 1%.

Screen Shot 2015-09-10 at 10.17.33 AM

Rutherford Closings  UP 12%

Average Closed Prices UP 8%

Average Sales Price – $208,125

Screen Shot 2015-09-10 at 10.19.33 AM

Williamson Closings UP 12%

Average Closed Prices UP 8%

Average Sales Price – $478,977

Davidson Closings UP 12%

Average Closed Prices UP 6%

Average Sales Price – $289,392

Screen Shot 2015-09-10 at 10.20.15 AM

Wilson Closings UP 11%

Average Closed Prices UP 4%

Average Sales Price – $261,735

 

CLOSINGS

  • Rutherford Closings down 13%
  • Williamson Closings down 19%
  • Davidson Closings down 5%
  • Wilson Closings down 27%
  • Total 4 Counties are down 13%.

PENDED

Pendings appear to be showing the season changes we expect for Fall

  • Rutherford pended 450 which is down 9%
  • Williamson pended 363 which is down 27%
  • Davidson pended 868 which is down 3%
  • Wilson pended 198 which is down 22%

Back in time…

October 2006 vs October 2015 YTD

  • 2015 Closings are 6% lower
  • 2015 Closed Prices are 23% higher at $311,306
  • 2015 Inventory is 20% lower at 6,123
  • Days on Market for 2015 are 56 Days vs 59 Days in 2006. 2014 was 67 Days.
  • Closed Prices for 2015 are 98.62% of List Prices, 2006 was 100.75% & 2014 was 97.98%

Download a full PDF version here ==> RedReport-pdf-10-15