During presidential election year when home purchases are expected to be weak, Nashville’s housing market has surprised many by becoming stronger than it has been for years.
According to Greater Nashville Association Realtors, home sales in Nashville increased by 26.2% during the 3rd quarter of 2012 as compared to the same period of the previous year.
Kendra Cooke, GNAR President stated that there has been an increase in home sales every month in the current year, with strong increase during the 3rd quarter particularly in the Middle Tennessee area.
People of Middle Tennessee have a lot of reasons to purchase a house despite the uncertainty of the election and these include decreased unemployment rate, new businesses offering jobs, lower interest rates, and low home prices from the recent recession.
According to John Bennett, Franklin’s Republic Bank market president, Nashville’s economy is at its best with the presence of new businesses plus low interest rates of slightly above 3% for 30-year mortgage (fixed rate) and lesser or adjustable rates for the 15-year loans.
In the County of Davidson, the 3rd quarter of 2012 recorded a total of 3,303 homes sold, which is 21.5% higher than the same period of the previous year and only about 3% increase in price according to the market survey from Chandler Reports.
East Nashville area had a 28% increase in home purchases and 14.3% increase in price during the last quarter as compared to the previous year.
In Green Hills however, the situation is reversed. A 50% sales increase was noted during the 3rd quarter of 2011 however the average price was down 15% during the 3rd quarter of 2012.
According to Terry DeSelms, a realtor, sellers are just being realistic when it comes to their asking price but still listen to the market thus the increase in sales and the stable prices.
The County of Williamson had a 28.8% sales increase with slightly decreased average price.
In Thompson’s Station Franklin south, both sales and price were up at 31.6% and 5.6% respectively.
Spring Hill experienced a strong 31% increase in home sales courtesy of the added jobs from General Motors. \The price however remained unchanged.
Wilson County had more than 24% sales increase but the average price remained flat.
An exception would be the County of Rutherford with increase noted in both the average price and home sales.
The fast-growing area of Smyrna-LaVergne also experienced increase in average price and home sales.
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