609 Lakemeade Pt

Sales dropped 19% in July compared to July 2021, Greater Nashville Realtors sales data reveals. Last July, there were 4,314 sales and, even as recently as June of this year, there were 4,257 sales. But in July, the number dropped to 3,459.

There were 4,677 sales in July 2020, an increase from 4,189 in 2019, which beat July 2018 with 3,812 sales.

Last month was a dismal month as Julys go, unless your concern is with the upper-end homes, where sales were actually better than July 2021.

Once again, the median prices for single-family homes and condominiums increased year to year, coming in at $490,000 for a single-family home. It was $415,075 last July.

July’s median is, however, a drop from June’s median of $495,000.

Condos rose from $292,735 last year to $347,745 this July but also dropped from June when the median price for a condo was $348,150.

Two hikes of 75 basis points seem to have contributed to calming the market in the lower-priced homes.

Unfortunately, with affordability already as issue in the Nashville area, the rate hikes hurt more for moderately priced homes, pushing monthly payments higher.

The monthly payment for a $300,000 loan at 3.5% for 30 years is $1,347. Now 3.5% has been replaced by 5% or more. A $250,000 loan at 5% would have payments of $1,342, meaning buyers lost $50,000 of buying power due to interest rate increases.

Or did they? Perhaps the sellers lost $50,0000 as monthly payment can drive the prices.

The good news for buyers is they can refinance. Greater Nashville Realtor president Steve Jolly reminds homeowners they “may refinance as many times as you want over the life of your loan.”

The Fed spikes might have hurt some markets, but not the upper-end where 2022 sales of $1 million or more hit 93 transactions in July, up from 84 in 2021. Not only were the unit sales higher, but the prices also were higher with the highest sale in July 2021 coming in at $5.125 million versus a $12.9 million sale last month.

Rounding out the luxury home market was one sale in the $4 million range each year, but there were 10 sales between $3 million and $4 million this year compared to only five last year.

Apparently, interest rates do not affect high-end sales as much as they affect the overall market.

Inventory has greatly increased with June inventory levels at 7,370, while the July number rose to 8,957 properties for sale. The National Association of Realtors has noted that a balanced market is when there is a six-month supply of inventory.

Even with the reduced sales numbers, inventory would have to hit 20,754 to be considered a market wherein neither buyer nor seller had the advantage. As of July, there is a supply of 2.59 months.

In the upper-end, the numbers continue to reflect a hot market with 339 listings, yet there are 199 sales pending for houses priced for $1 million-plus in Davidson County.

This points to even more sales than the 94 upper-end sales that were logged in July.

Sale of the Week

Although there are some enormous sale price numbers flying around Nashville, the city does not have a monopoly on upper-end homes, as proven by a recent sale in Old Hickory. The house is located on the lake, and waterfront land has always attracted high sales prices.

The property located at 609 Lakemeade Place traded hands last week for $2.97 million shortly after Gordon Perry with Realty Executive Hometown Living listed the house for $3.1 million. The 6,638-square-foot residence includes four bedrooms, four full bathrooms and two half bathrooms.

Perry described the home as a lakefront executive home and noted it has a dock on the property, so no need for a marina. Also featured in the home is an elevator to service ensuite bedrooms on all floors. There also is a chef’s kitchen and two screened porches.

For days when the weather forbids boating, the house includes a full-swing golf simulator.

Brad Shoulders of Vision Realty Partners represented the buyer whose days will be filled with recreation.

The house went for $447 per square foot, a respectable number for anywhere in the area and a bargain for those driven to claustrophobia by the landlocked area. Anchors away.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at [email protected].