The National Association of Realtors (NAR) is running promotional pieces on radio and television citing the importance of the housing industry. NAR’s data reflects that one job is created from every two houses sold and that each house that is sold pours $60,000 into the local economy.

The Nashville area surpassed 40,000 residential sales in 2006, a number that dropped to 20,000 last year. If NAR’s numbers are accurate, and they generally are, that suggests that $1.2 billion that would have been infused into the local economy is missing in action.

If 40,000 is the benchmark, and the sales of 2007, 2008, 2009, 2010 and 2011 are added, that would total 61,000 sales or 30,500 jobs, and $3.6 billion that did not flow into the local economy.

It should be noted that Nashville was one of the last cities to join the real estate collapse, enduring for two full years longer than most markets, and never witnessed the devastation found in Michigan, Nevada, Florida, or California where home prices fell more than 50 percent in some areas.

While most would agree that the 2006 market was excessive in this area, it was not enormously inflated. Consequently, if the area rebounded even by even 50 percent, 5,000 jobs would have been created and $60,000,000 infused into the area. It all starts with housing. A total rebound would add the missing $3.6 billion.

After the flood, there was a slogan the city adopted on signs, poster, T-shirts stating “We’ll be right back.” And as for housing, we are rebounding. Realtracs, the multiple listing services for the area, reported that sales for May 2011 were 1,945 followed by 2,031 sales in June and 2,021 in July, with 2,021 sales pending for August.

Obviously, if this pace were to continue for eight more months, the area would experience its best year in more than four years. So, as for real estate, we’ll be right back. Yet, there’s always a “but” and there is looming federal legislation that could throw the market back in the floodwaters. While things are better, they are fragile.

Of note is that these increased sale numbers of the last three months were neither the result of federal tax incentives nor of subsidized this or loopholed that. It was due to the fact that the city is innovative, creative, has sound leadership and as strong chamber of commerce. However, most important is the spirit, determination and courage exhibited by its citizens and residents. This city refuses to fold, under any circumstances.

Also worthy of note is that the growth in residential real estate sales figures has been accomplished with new regulations in the lending industry, appraisal industry and with foreclosures and short sales abundant and perplexing. Other cities are not rebounding as quickly and as well.

While things are improving, we still have a long way to go and there is the threat of federal government intervention. The oft-quoted, most-feared sentence in the country: “I’m from the government and I’m here to help.”

Under current conditions, the area is growing with no funny money and no assistance. The loans are sound, the most secure in the past 25 years. The banks are seeing profits again, and that is a great thing. But as Uncle Jed said to Jethro, “Don’t hep me boy.”

A bill floating about Washington would require a 20 percent down payment for a residential mortgage. As was written in this column last week, the wealth of the citizenry has evaporated. Most homes, formerly the individual’s most solid investment, have lost 20 percent of their value.

In the past, the equity in the home was the source of the down payment. If homeowners had money in the stock market, it is gone. It’s back. Uh-oh, now it’s gone again. Up 600 points, down 500 points, etc. In short, not a down payment source.

This area has sound leadership in Washington, and the Tennessee delegation has voiced opposition to the 20 percent down requirement known in Congress as the QRM, Qualified Residential Mortgage. But it would not be a bad time for your voice to be heard. If this bill passes, even Nashville cannot hold back the floodwaters. We’ll sink. Call your Representatives and Senators. They’ll be glad to hear from you.

Richard Courtney is a real estate broker with Pilkerton Realtor and the author of Come Together:The Business Wisdom of the Beatle. He can be reached at [email protected].