All eyes are on the Federal Reserve, whose interest rate bumps have been effective in slowing real estate across the country but not in slowing all sectors of the economy. Housing starts for August were down 11.3%, economist Elliot Eisenberg reports, the lowest level since June 2020. New home sales decreased 8.7%, and auto sales dropped by 4.6%.

Mary Littleton, a senior mortgage broker with Accurate Mortgage, says the Federal Reserve will not raise the interest rates again because 10-year Treasury Bill yields are moving upward. Her reasoning is that higher Treasury yields make for tighter financial conditions, which slow the economy. And that is the goal of the Federal Reserve.

As long as the elevated yields continue, the Fed can ease interest rate increases.

While Littleton did not address rate decreases, it would seem logical that there are no decreases on the horizon, thereby leaving sellers to hope for more relocations, downsizing buyers or innovative financing packages.

With hundreds of thousands of Middle Tennesseans resting comfortably with mortgages in the 2.76% to 3.875% range, it is not likely that they will choose to sell and move into a new residence and have a mortgage of 7.75%.

Sale of the Week

Last week, the house located at 710 Bresslyn Road in West Meade sold for $3.3 million, once again giving credence to the continued strength in the $3 million category for new construction. Two others in the same category sold last week.

710 Bresslyn Rd

Jason Gruner, a top-producing Realtor from Coldwell Banker Barnes, was the listing agent and came out of the chute with a list price of $3,449,900. After 40 days with no offers, he reduced the price to $3,195,000.

At that point, he received multiple offers, and the house sold for $3.3 million, $105,000 more than the new list price.

That is a scenario that continues to pervade the residential real estate market, where, apparently, there is a perfect price that must be found. The philosophy of “Let’s price it high and, if someone likes it, they’ll come in with a lower offer” does not seem to hold water in the current environment.

Gruner noted the Bresslyn house featured “luxury living in a single-level residence.” The homebuilder, Ascent Construction, has seen success in various areas. In this house, Gruner explained there is a “seamless blend of indoor and outdoor living highlighted by and enchanting open-air atrium.”

The home includes 5,904 square feet with five bedrooms, five full bathrooms and one half bathroom, thereby selling for $559 per square foot. Courtney McCracken represented the buyer’s interest and prevailed in the bidding war.

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