Yes, Nashville home sales fell in March 2009 compared to March 2008, but I am still very hopeful. Unfortunately, the media uses the "median" sale price, which is far too unrealistic. We need to view the average sale price as an indicator of any change, whether higher or lower compared to the same month in years past.
I personally saw an increase in closings, but in my situations, half of my closings were my buyers who purchased foreclosure homes. Foreclosures do affect the median price because they are usually sold lower than their real market values. New home prices were down as well. Builders such as Pulte and Centex, who saw slow and lower sales, lowered the prices of their homes to move the inventory off the market. Builders were faced with homes that were under contract with "sale of home" contingencies that were unmet because buyers could not get their homes sold.
Another reason that the number of sales were down in March was due to the very low interest rate. It hovered under 5% and current homeowners, concerned about their personal economic situation, chose to refinance instead of sell their current homes to buy new ones.
Buyers are out there. Some are cleaning up their credit. Others are saving for a more substantial down payment. Others are taking their time looking. I do see signs of growth and increased sales. Do I think we'll be back in the same position we were in a few years ago? No, and I hope we don't get back to that point. We're actually closer to a more balanced market than we have been in a long time.
To view today's article in The Tennessean, CLICK HERE. I think you'll find the article an interesting read.
For help in getting your home sold or buying a new home, please feel free to contact me. As a full time professional real estate agent, I'm here to help.
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