The numbers from the Greater Nashville Realtors are in for June. Not only did we see the first increase in sales numbers in the last three months, but we also were UP Point 5 percent from sales in June of 2019. When you look at the numbers for the second quarter of this year compared to the second quarter of 2019, we were down 12 percent, but to see the uptick in sales in June is a good indicator that our housing market is quickly rebounding, which is fueled by the strong buyer demand and that’s actually in line with what economists are saying.
“This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership. The bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”Lawrence Yun, Chief Economist at the National Association of Realtors
Like Yun said, housing appears to be what’s driving the economic recovery. With record-low mortgage rates driving high demand from potential buyers, homes are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving.
“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…..The quick recovery has surprised most forecasters.”Diana Olick, CNBC
Because of the housing recovery, industry experts are adjusting their expectations for the rest of the year.
The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But we don’t think that’s the case anymore. We revised our q3 numbers higher. Before we predicted a 2 percent decline in purchase originations in 2020, now we think there will be a two perfect growth this yearJoel Kan, Vice President of Economic and Industry Forecasting with the Mortgage Bankers Association
When it comes to looking forward toward the end of the year, here is what experts are predicting.
“We can project that the next few months will see a slow-yet-steady improvement in new inventory. We projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame.”George Ratiu, Senior Economist with Realtor.com
Nashville’s Real Estate Market
When it comes to home values in Nashville throughout the pandemic, the lack of inventory and low interest rates continue to drive up home prices. In June, Nashville and the surrounding counties were actually down nearly two thousand properties from June of 2019. Our inventory is down, but new listings are hitting the market each day. That is great news for buyers, but even with new inventory hitting the market, we are still experiencing bidding wars. Homes that are priced appropriately are moving fast.
In Davidson Country, the average days on market is 76 with an average price of $314,450 and homes selling at 98.6% of their list price. In Williamson County the average days on market is 97 with an average selling price of $604,259 and selling at 100% of list price. While some buyers may have been hoping to score a deal on a home during the pandemic, the strong buyer demand is driving the at or nearly at list price sales. It is worth noting again that homes that are priced right and marketed well are going quickly within a matter of days and most often for over asking price.
Thinking about selling? Click here.
To recap, what does this all mean? While the pandemic caused a slight halt in the real estate market, all indicators point to the fact that it is roaring back here in Nashville. While there’s still some economic uncertainty as we wait to see what transpires this fall and winter with the virus, all experts predict the real estate market will fair just fine. If you ever have any questions, please don’t hesitate to reach out.