The Greater Nashville Association of Realtors released its September sales numbers along with the results of the third quarter. For the month, unit sales are up 16.9% with1832 closings this year versus 1,567 closings reported for the same period last year.

Third quarter numbers have increased from 2010 with 5,900 closings, which is 20 percent higher than last year’s 4,906 for the third quarter. As is often noted, this year’s numbers are actual sales and are being compared to a year that had the first-time-homeowner’s tax credit.

As a result of the success of the tax credit, 2010 sales were significantly skewed while 2011 are sales, without the incentive and with the stringent lender requirements, are off 2.5 percent.

One reason for the increased sales numbers is that the median price is falling. September 2011’s median is $163,000, down from $171,820 in 2010. Since these are median prices, not average prices, it is not reflective of the prices of individual homes. It is, however, a good barometer as median prices were once in the mid $180,000s and are now only $17,000, less than 10 percent below the high.

Condo sales prices have increased to $155,000 from $144,900 a year ago. In condos, as in residential, pricing is everything, and the Rhythm on Demonbreun is a sound example. After having sold approximately 50 units in three years, the bank foreclosed on the remaining 37. Jimmy Pilkerton, principal broker at Pilkerton Realtors, says more than 30 of those are under contract after rather large price reductions.

Consequently, it could be deduced that “price, price, price, price” has replaced “location, location, location” as the three most important aspects of real estate. The Rhythm’s location is desirable and sellable, but the prices were too high.

It would be a reasonable assumption that the market will not support new construction or development. Perhaps, tax-increment financing should make a comeback. It worked for the Eagles.

While sales are up for the quarter, the future is not as bright with pending sales being at their lowest level since February. So the fall market, usually Nashville’s strongest, is not faring well, even compared to February, usually one of Nashville’s weakest sales activity periods.

Of course, the price reductions are across the board so buyers that are purchasing homes with higher price tags than their current residences have opportunities to improve their conditions, both with the upper end homes being priced considerably lower than three years ago and with the interest rates continuing to drop.

Stability has replaced uncertainty and, as the stock market continues its momentous swings, sticks and bricks are once again a viable investment option. Banks are, according to many, more open to financing residential construction projects, and material costs and labor are available at bargain-basement prices.

Brighter days may be looming in the Nashville winter.

Richard Courtney in a residential real estate broker and the author of Come Together: The Business Wisdom of the Beatles and can be reached at [email protected]