Middle Tennessee Real Estate - Post Flood and Tax Incentives

Bob Parks Realty is excited about the continuing growth and stability of the real estate market. The first quarter of 2010 marked the second straight quarter of more sales compared to this time last year. This quarterly positive growth replaces what had been a downward trend that had lasted 13 straight quarters beginning in the 3rd Quarter of 2006. During the last quarter of 2009 and the first quarter of 2010 we sold 1539 more homes compared to this same time last year. This is a 26% increase of closed homes.

Based on the initial second quarter reports, we strongly believe that sales will continue to grow through mid-summer. The tax credit expired April 30, but homes can still close through the end of June. Now the big question – what happens after June 30? While we know the rate of growth was bolstered by the tax credit, we believe the market is stabilizing in most all price points and our sales will continue to increase (although at a slower rate than the past few months) over last year’s numbers. New construction is beginning again in all parts of our area, job numbers are slowly beginning to improve, and interest rates continue to stay at historic low levels.

Just as Nashville is rising due to the flood, we see real estate doing the same thing. Our understanding is that the deadline to apply for Federal Disaster Loans is July 6, 2010. If you know someone that still is in need of help, here is more info:

Call 1-800-621-FEMA (3362) or visit www.DisasterAssistance.gov. You can also visit m.fema.gov from your mobile device for information or visit the FEMA-TEMA Facebook page.  Additional information for TNDisasterInfo include Rebuilding Resources and Fixing Flood Damage.

There’s more to the cost than the price…

How much does a home cost? For most buyers a loan is a necessity. Coming out of a time of recession, most all economists agree on a time of inflationary pressures where costs rise. Not only will this likely cause a rise in home prices, but most assuredly the price of money or the interest rates. With today’s interest rates at or below 5%, the chart shows possible affects on the monthly cost of a home.

How many homes do we have “On The Market”?

Currently there are 13,800 homes on the market in a 6 county region in the Nashville area. This number has been staying between 11,000-15,000 homes available since the market downturn began in mid-2006. As mentioned: the number of closings shows an increasing trend. If the inventory stays constant and buyers continue to increase, this points to a healthier real estate economy in middle Tennessee.

Posted by:  Kimberly Fahey

If you can read this, you don't use a typical webbrowser that plays nice with CSS.
Please do not fill in anything here!

Leave a Reply