The National Association of Realtors serves its Realtor members with forecasts, research and distribution of information on the national level, as well as assisting in advocating for homeowners rights at local, state and federal governments.

In mid-November, the Association released statistics that reflect the composition of the various groups of homebuyers. The feature led with the findings that the typical homebuyer’s annual household income was now $107,000, up a record setting 22% from last year. Last year, the average income was $88,000.

The country had not seen such a jump since 1981 when the NAR first began tracking this information.

One reason for this increase is due to the “erosion of housing affordability due to higher home prices and mortgage rates,” Jessica Lautz, NAR deputy chief economist and vice president of research. Lautz also noted typical down payments had increased 8% for first-time buyers and 19% for repeat buyers, the highest number for first-time buyers since 1997 and for repeat buyers since 2005.

These first-time homebuyers accounted for 32% of all buyers – this after last year’s historic low.

As interest rates squeezed many would-be, first-time buyers from the market, an astounding 70% of those who purchased homes last year did not have a child younger than 18 living at home. These families were able to have their offer accepted in multiple-offer scenarios by making cash offers or by seeking smaller loans than the first-time buyers.

Anecdotally, more in the Nashville market have offspring older than 18 living in their homes than in years past. Nationally, 14% of buyers say they have purchased multigenerational home.

Nashville, with all of its colleges and universities, feeds its population with graduates who decide to make the city their permanent homes. During the past five years, in particular, the area has witnessed an unprecedented number of families relocating either by choice or due to a company relocation. As the population grows, the number of parents desirous of being with children and grandchildren grows.

For very family that decides to move into the area, be prepared for trailing family members. There are even rumblings about a new transit plan.

Sales of the Week

Nashville, though full of writers and creative types, came long a bit too late for one of those to have coined the title or phrase “A Tale of Two Cities.” Now, any book about the settlement on the Cumberland could be more aptly titled “A Tale of Many Cities.”

34 Lynnwood Lane

The numbers reflected in the NAR release refer to the entire county with its towns, hamlets, counties and cities, all with various pockets that are far better and some fare worse off than others.

For example, the house at 308 Rachel’s Court East in Hermitage sold last week for $216,000, or $234 per square foot. The two-bedroom house with one full bath and 934 square feet had a new roof in 2020 and laminate flooring throughout, listing agent Wendy Eakes with George Thomas Realty reported.

Alex Andrace assisted his buyers in purchasing the house, which has an interesting history and bolsters the argument that foreclosures might be much scarcer than they were in past years, largely due to the rise in down payments amounts. Additionally, the past sales substantiate the fact that there is money to be made with foreclosures.

In 1988, the house was purchased in foreclosure by the Secretary of Housing and Urban Development for $49,195. HUD sold the house for $39,900.

In 2003, the house sold for $66,500 and, based on Metro records, the purchaser borrowed $65,472 for a grand total of $1,028 investment in the house, not including closing costs, which might have been paid by the seller.

It is not surprising that the house went into foreclosure again, and this time Uncle Sam paid $84,765 for the property and sold it for – are you sitting down? – $31,500. The buyer, who paid $31,500, held it for seven years and sold it for $169,000 to a buyer who borrowed $165,935 and held it for three years before selling it last week for $216,000.

Across town in Belle Meade, real estate veteran and historic preservationist Allen DeCuyper listed and sold 34 Lynnwood Lane for $4.8 million or $753 per square foot. It had last sold for $1.45 million.

The owner had spent a considerable amount of money as the house, which features all of the requirements necessary to land $4.8 million sale: pool, cabana, spa, gourmet kitchen, three fireplaces and the mandatory diving rock.

The landscaping package was most likely more expensive than the house on Rachel’s Court.

Oddly enough, a $4.8 million house in Belle Meade is very reasonable.

Barbara Keith Payne, one of the city’s top real estate brokers, delivered the buyers. Chances are they had a down payment of somewhere north of $28. If they ever sell, HUD will be unaware of the transaction.

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