Nashville-area sales dropped 30% in January compared to January 2022, Greater Nashville Realtors data reveals. This drop is similar to data for the past several months since the Federal Reserve began raising interest rates in efforts to curb inflation.
Consumers had become accustomed to the interest rates hovering in the 5.95% to 6.125% when the Fed raised the rates again by 0.25%, considerably down from the 0.75% increases they had instituted last spring and summer. Despite the lower jump, mortgage rates increased to 6.95%.
Mike Garrettson, mortgage loan officer with Wesley Mortgage Company, says rates then settled and are close to where they were a week ago at 6.125%. Garretson and his cohorts expect at least one more hike out of the Feds in the coming months, and some say they expect another in the summer.
Inventory was up slightly with 8,572 properties in inventory at the close of January, compared with the 8,204 at the end of December, still down considerably down from the 9,757 units available in November and the 10,128 in October.
With inventory continuing to evaporate even with sales slowing, sellers remain at an advantage.
“Current inventory tells us that we are still in a seller’s market,” says Brad Copeland, president of the Greater Nashville Realtors. Anything less than a six-month supply favors the homeowner, and prices reflect that.
The median price for a single-family home rose from $425,000 in January 2022 to $450,000 this January, and condos increased from $308,685 to $325,000.
These slight increases are the some of the smallest hikes in several years, leading Brad Copeland to note “2023 is offering a more stabilized environment for homebuying.”
It appears our bleak year-to-year comparisons in the sales figures are about to give way to more positive numbers. Evidence of this trend can be found in the 2,571 pending sales at the end of January. That’s closer to the 2,898 pending sales at the end of January 2022.
Historically, blooming vegetation spawns more listings. Once the spring breakers return from 30A, there will be more inventory to be devoured. At least, buyers hope that’s the case.
Hairston is Realtor of the Year
Hairston
Kristy Hairston was named Realtor of the Year by the Greater Nashville Realtors at the Awards of Excellence ceremony Saturday night.
Hairston has exhibited unparalleled leadership within the ranks of the association. She began her career when the Great Recession had the real estate in its grasp and excelled in serving her clients and volunteerism, serving the Greater Nashville Realtors in a number of capacities. She chaired both the RPAC and the Professional Development Committee.
Her work in the education area earned her the Educator of the Year for the state of Tennessee, and she became the president of the Greater Nashville Realtors in 2020 when the pandemic descended upon the country and guided the Realtors through those impossible times.
Hairston is a graduate of Hunter’s Lane High School and Tennessee State University. She is chairperson for the Northwest YMCA and is on the executive committee of Habitat for Humanity. Hairston is with Compass RE.
Hairston was the first African American to serve as president of the Greater Nashville Realtors and is the first African American to win the coveted Realtor of the Year award. She is most deserving of both.
Sale of the Week
160 2nd Ave S #3402
The computation of price per square foot was an exercise often used to determine the value of real estate – until it was not.
The sale of the condominium at 160 Second Avenue South in the Four Seasons developments is an example of why comps – comparable sales – fail to carry the weight they did in the past, lest everything would cost millions of dollars.
Coming in at a strong $1,430 per square foot, the 2,378-square-foot unit sold for $3.4 million. The unit has two bedrooms and two full baths along with one half bathroom. Ali Noel of Compass RE sold the unit last week.
With a maintenance fee of $3,353 per month and an estimated $28,000 in annual property taxes, the owner is spending $5,686 per month before they turn on the lights. There was no loan involved in this transaction, MLS records show, so keeping the condo lighted should pose no challenge.
Richard Courthey is a licensed real estate broker with Fridrich and Clark Realty and can be reached at [email protected].