1713 Castleman Dr

The news is dismal as far as year-to-year transaction comparisons go. But home prices continue to rise, reinforcing residential real estate as a profitable investment.

The Greater Nashville area finds itself in a peculiar real estate environment in that those who purchased during the wildest buying spree in the city’s history – perhaps any city’s history – are able to profit when selling in the midst of one of the lengthiest transactional market downturns in history.

Transactions do not equate to market strength, as shown in the case of last week’s sale at 1713 Castleman, a house that closed Aug. 16, 2021, for $2,024,613, a time when multiple offers ruled the day. Properties were selling for more than list price, and contingencies such as inspections, appraisals – or, heaven forbid – whether or not the buyer could get a loan were brushed aside.

During these frenetic times, buyers and their Realtors alike worried about what would happen if the 2021 buyers would need to sell in a couple of years when the market settled.

The market has settled. Second quarter sales decreased by 19% compared to the same period in 2022, the Greater Nashville Realtors reported last week.

In June 2021, a couple of months before the 1713 Castleman purchase, there were 4,649 sales in the Greater Nashville area. This June, there were 3,533.

Based on those numbers, it would seem that the price would have decreased from the $2,024,613 sales price, yet the house just sold for $2.67 million.

Even more confounding: Inventory in June 2021 was 5,246 when that house sold. This June, it was 9,594.

More inventory and fewer sales do not usually point to increased prices. In Nashville, it seems to.

“For the qualified buyer, the stabilization of the house prices in 2023 combined with the increased inventory makes now the most buyer-friendly market in Middle Tennessee in several years,” says Brain Copeland, president of the Greater Nashville Realtors said in a press release.

Copeland’s organization also noted sales in June of this year surpassed the sales in May of last year by a 3,533 to 3,436 margin.

Even though 2023 transactions are down from the 4,649 sales in August 2021, when the Castleman house was purchased, prices continue to rise. To Copeland’s point, at this time on the market, there was no other home to compare with that particular home.

Listing agent Kristen Cover with Bradford Real Estate helped drive the price, no doubt, with her description of the property. To quote the late John Lennon, her words were “flowing out like endless rain into a paper cup.”

“Equipped with soaring vaulted ceilings, large windows and warm hardwoods throughout, this stunning home marries the sleek designs of Scandinavia with the airy openness of a Mediterranean villa,” she writes. “Built for both family and entertaining, move effortlessly from one luxurious space into another – from your living room, into a large screened-in porch and outside to a gorgeous pool and outdoor kitchen.”

The newly constructed house, which also features a three-car garage and a large, well-appointed master suite, was built by award-winning Build Nashville. It has five bedrooms and six bathrooms and 4,795 square feet.

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