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.