1015 Halcyon Aveue

Nashville is not alone when it comes to rising home prices, the National Association of Realtors reports. In fact, that seems to be the case in most large cities across the country, despite an overall sales slump.

Data shows fourth quarter home prices increased in 166 of 186 metro markets, or roughly 90%. Prices in those markets increased an average of 4% the fourth quarter.

In perhaps a more interesting development, the average monthly mortgage increased $1,969 per month, up a 58% compared to the fourth quarter of 2021.

The news was worse for first-time homebuyers, with monthly payments increasing from $1,233 in January 2021 to $1,806 for January 2023 on a home valued at $321,900.

The 4% increase in pricing has occurred even though the Federal Reserve bombarded interest rates throughout 2022 and has led to a market shift with price increases softening. “A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” NAR Chief Economist Lawrence Yun says.

Yun notes cost increases “have far surpassed the consumer price inflation of 15% and 14% respectively, since 2019. Far fewer metro markets experienced double digit gains in the fourth quarter, he adds.

NAR data shows the South saw the largest share of single-family existing sales in the fourth quarter with 45% of all sales nationally and a year-over-year appreciation of 4.9%.

In the so-called normal years between inflationary periods, recessions and wars, typical Nashville homes have appreciated 5-10% annually.

Only 11% of the markets in the country saw home price declines, and those were areas with weaker unemployment and instances of residents moving out. In Nashville, it seems all Realtors are working with buyers relocating from California, with its individual income tax and political unrest.

Yet, even in the chaos, the most expensive homes in the nation are in the San Jose-Sunnyvale-Santa Clara regions with a median price of $1,577,500, down 5.8% but still leading the nation. No. 2 is San Fransisco-Oakland-Hayward at $1.23 million, down 6.1% compared to last year. The homeless situation there is driving residents into different locales.

The Greater Nashville median price in $450,000.

Rounding out the top three is another California with Anaheim-Santa Anna-Irvine at $1.132 million, down only 1.6%. The San Diego region and the Los Angeles areas both are in Top 10, with L.A. down a point.

As far as the big gainers nationally, seven of the 10 are in Florida and the Carolinas, although Farmington, New Mexico, is the leader in the clubhouse with prices of homes increasing 20.3%, followed by the Sarasota Area with increases of 19.5% and Naples, Punta Gorda and Daytona, all above 15%.

With many Nashville residents going to Carolina – both in their minds and for their second homes – it is no surprise the areas that include Greensboro and Winston Salem in North Carolina and Myrtle Beach, South Carolina, have seen increases of more than 15%, with Greensboro homes experiencing 17% gains.

With real estate price jumps softening, although increasing, perhaps the next 0.25% pop from the Feds will not have a negative effect on the market.

Now, if those chickens could only get their act together and lay some eggs.

Sale of the Week

With the sale of 1015 Halcyon last week, 12South has joined the $3 Million Club. The new construction that includes 4,130 square feet in the main dwelling and an additional 600 square feet in the detached living area sold for $3.2 million before hitting the market.

Coming in at $775 per square foot, a number that is higher than many sales in the Belle Meade area, the home features four bedrooms, four full bathrooms and one half bathroom in the home with an additional bedroom with a full bathroom in the DADU. There is a two-car garage.

As the property was sold before hitting the market, the listing agents had no need to wax on the brilliance of the $3.2 million sale. One of the co-listing agents was Lacey Newman, the high-flying Compass agent, and her co-listing agent was none other than Haleigh Sport, who is a good one.

Donald Berschback and Lorene Hetherington – both of Parks – in representing the seller. They are with the Parks office that was Sharon Langford & Associates before it was acquired by Bob Parks in 1999.

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