Mark's CityLiving Blog

Nashville Home Sales Rise for First Time in 3 Years

2009-11-10T09:03:00.001-06:00

Nashville home sales rise for first time in 3 years
Incentives push Nashville-area market to first gains in 3 years
By Naomi Snyder
THE TENNESSEAN

Nashville-area real estate agents applauded last week when Congress extended a series of tax incentives designed to boost home sales, and on Monday, the latest monthly numbers showed the area has already seen sharp gains in sales — particularly among first-time home buyers. In fact, the Nashville real estate market saw its first increase in home sales in three years in October, when the number of completed deals jumped 23 percent compared with a year earlier as a result of the federal government's aid.

Agents attributed the double-digit increase to more first-time buyers scrambling to take advantage of what had been an expiring $8,000 tax credit, which Congress has now extended into next summer. Congress also added a new $6,500 tax credit for others who have lived in their current residence at least five consecutive years in the past eight. If they buy a new home before June 30, they get the smaller tax break.

Real estate sales professionals hope the new incentives keep sales rolling and prop up the market over the winter, when the pace of sales normally slows.

"The phone calls I'm receiving, the open houses, I just feel like there is so much more positive energy right now than a year ago,'' said Christie Wilson, president of Wilson Group Real Estate Services in Nashville. "A year ago, it was unnerving how scared the marketplace was. Right now, everyone is cautiously optimistic. That wasn't true a year ago."

The Greater Nashville Association of Realtors also reported that the median sales price for a single-family home in October stayed the same as the past three months — $160,000 — or a 6 percent decline from a year ago. Realtors said that was a sign that first-time home buyers, who tend to buy less expensive homes, are continuing to affect prices. The median price for a condominium sold was $144,000, down 5.6 percent from the same month a year earlier.

Tennesseans in particular seem to love the federal tax credits. The U.S. Government Accountability Office said last month that Tennessee had the fifth-highest rateper capita of people taking advantage of the first-time home buyer credit, with 35,836 people taking $256 million worth of tax breaks as of Aug. 22.

"That obviously is the driving catalyst" for home sales, said Mike Nichols, president of the Greater Nashville Association of Realtors. "We don't know where the bottom is for first-time home buyers."

People such as Julia Crownover, a 23-year-old public school teacher, said they wanted to buy a house, but the tax credit pushed them to act sooner.

Crownover signed a contract on a new three-bedroom cottage to be built in Sylvan Park for less than $300,000. She didn't want to disclose the exact purchase price on the home in West End Station, which is being developed by Core Development Services. Homes in that neighborhood start at $249,500.

"This is the time to buy, when the market is down,'' she said, adding that she planned to get roommates to help her pay the mortgage. She now lives with her parents.

Still, some economists and others worry how long the federal government will be able to stimulate the housing market with special incentives. "I would like it to be the economy and not the stimulus,'' said Mark Deutschmann, the president and chief executive officer of Village Real Estate Services in Nashville.

Josh Anderson, an agent with Keller Williams Realty, objects to the tax creditsin principle, although he concedes they are helping sales. "Government can't keep propping everything up,'' he said. "At what point do you quit giving money?"

The foreclosure rate in the Nashville area also continues to edge up, and statewide unemployment remains high at 10.5 percent. "In Nashville, (a recovery) is really going to be dependent on the recovery of the job market,'' said David Stiff, chief economist at Fiserv, a financial data consulting firm that monitors home prices in 384 cities.

The company forecasts that average home prices in the Nashville area will continue to fall 4.3 percent in the year ending in the second quarter of 2010, compared with an 11.3 percent drop for the nation as a whole.

Senate Votes to Renew Tax Credit

2009-11-06T09:38:00.001-06:00

The Washington Post reported yesterday that the $8000 tax credit for first-time home buyers has been extended through the first six months of 2010. Additionally, the new bill allows for eligible homeowners who are NOT first-time buyers to receive a $6500 refund. The bill passed 98 to 0 and will reach the House floor by Thursday. Following that, the bill would require the President's signature.

To receive the $6500 tax credit, homeowners must be purchasing a new primary residence and have owned their current home for at least five consecutive years in the previous eight years. There are also income restrictions.

Full Washington Post article HERE.

Existing Home Sales Up 9.4% Nationally

2009-10-27T13:05:00.003-05:00

From the recent issue of the Nashville Business Journal...

First-time home buyers have helped drive up existing-home sales nationwide, according to the National Association of Realtors. Sales of existing homes jumped 9.4 percent in September to a seasonally adjusted rate of 5.57 million units. That’s up from 5.1 million in August.

Sales activity is at its highest level in more than two years, the association says. Lower prices, coupled with a first-time home-buyer credit, are behind the increase, said Lawrence Yun, chief economist for the Realtors association. “We are hopeful the tax credit will be extended, and possibly expanded, to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery,” he said. Still, Yun said, there needs to be a steady stream of qualified buyers to bring down inventories and create price stabilization.

In the South, existing-home sales rose 9 percent to an annual level of 2.06 million in September — 10.8 percent higher than a year ago. The median price in the South was $153,500, down 7.6 percent from a year ago. Nationwide, the median price for existing single-family homes was $174,900 in September, 8.1 percent lower than a year ago.

Don't Forget! Big Draw 12South This Saturday

2009-10-16T10:52:00.001-05:00

Don't forget! Big Draw 12South is THIS Saturday!

Revolving Skyscraper

2009-10-01T08:02:00.001-05:00

Can you imagine something like this coming to Nashville?

Watch The Revolving Skyscraper in Technology View More Free Videos Online at Veoh.com

Big Draw 12South

2009-09-17T10:43:00.003-05:00

We love to support local community events, especially ones in 12South which is just next door to our main office (and where we do a lot of our business). Here is information about Big Draw 12South, an event coming to Nashville on Saturday, October 10.

What’s The Big Draw? The Big Draw is an annual event comprised of activities centered on drawing. Initiated in 2000 by the wildly successful UK Campaign for Drawing, The Big Draw promotes John Ruskin’s belief that drawing is a key to understanding and knowledge. Drawing America believes that The Big Draw is a natural way to build community by connecting to and exploring our history and identity through fun drawing activities.

Big Draw 12 South: This Is Where I Live! provides a modest start for an annual Big Draw Nashville and serves as a national model for the neighborhood approach to a Big Draw.

Here is the schedule for Saturday, October 10.

8 AM — Meet on the porch of The Frothy Monkey for tips on drawing buildings and talk on the architecture and history of 12South Neighborhood.

8:45 AM to Noon — Draw your own house or a favorite building in the neighborhood.

Noon to 2 PM — Drop off drawings at The Frothy Monkey Big Draw Station.

6 PM — Join us for evening reception to celebrate exhibit of all the drawings.
No judgment for “best drawing” — every drawing has its merit. The prize is to participate,
draw and learn how to see the neighborhood in a new way.

http://www.bigdrawnashville.org/
www.twitter.com/bigdraw

Success at Velocity

2009-08-28T08:37:00.000-05:00

We had a great tour yesterday at Velocity in the Gulch. About 80 people came out to tour the new development on 11th Ave S next to Icon. Thanks to everyone who participated! Stay tuned to our blog and the Events section of our web site and we will soon reveal our next tour stop for September!

From the Tennessean

2009-08-27T15:34:00.002-05:00

From yesterday's Tennessean, click here for the full article.

Good News for Housing

The housing sector received positive news, too. The Standard & Poor's/Case-Shiller's U.S. National Home Price Index rose 1.4 percent in the second quarter from the January-March period, the first quarterly increase in three years. Home prices, though still down nearly 15 percent from last year, are at levels last seen in early 2003.

The report added to recent positive news about housing. The National Association of Realtors said last week that sales of existing homes rose 7.2 percent in July, the fourth straight monthly gain.

The Commerce Department is set today to report new-home sales for July. Analysts also expect that figure to rise. Higher home prices would help consumers, who are saving more and spending less during the longest recession since World War II.

"An upturn in prices has to ease some of the pain and may even get some people to loosen up on their wallets a touch," Joel Naroff, chief economist at Naroff Economic Advisors, wrote in a note to clients. "An improving housing market coupled with better consumer spending could ensure that the recovery takes hold."

Best of Nashville

2009-08-25T10:33:00.007-05:00

Voting is open on the Nashville Scene's web site for Best of Nashville 2009. Please vote for Mark Deutschmann for Best Realtor (#147)! He was voted Nashville's BEST Realtor in 2008 and we hope our clients and friends feel we are the best again this year! (Remember to fill out at least 25 categories for the ballot to be valid.)

Vote HERE!

Happy Searching

2009-08-24T07:35:00.000-05:00

Village recently revamped the results you will find when searching the MLS on our web site. Whereas you use to get only a handful of information about each home, you now will find a multitude of details including schools, lot size, and utility information such as if the home uses electric or gas heat. We hope you find these expanded search results useful! Happy searching!

Tour Velocity in the Gulch

2009-08-20T12:04:00.005-05:00

The next CityLiving Lunch tour will visit Velocity in the Gulch. Velocity in the Gulch is one of the city's newest loft developments with fantastic price points starting in the $160,000's. Having just completed construction, you will be one of the first to tour Velocity. The tour is Thursday, August 27 from 12-1pm. RSVP online here, and there will be a free lunch for you following the tour, compliments of Bristol Development Group.

30 Lofts Under Contract at 5th & Main

2009-08-19T12:10:00.001-05:00

We are happy to announce that there are 30 contracts written on units at 5th & Main, with a handful already closed! The CityLiving Lunch Tour in July drew over 120 people interested in this urban development in East Nashville. With the exclusive pricing available and the unique location between Five Points and Downtown, 5th & Main has garnered a lot of interest. Be sure to check out the new web site at www.5andM.com to view floor plans, read about green features, and see pictures of the contemporary finishes.

Village's Sales in July

2009-08-18T07:02:00.000-05:00

Village had another solid month in July. The company sold 137 units - roughly a 1% increase from June, and a 2% increase from July 2008. Our agents had 17% more buyer-side sales than the previous month - it is still a buyers market! The company on average received 94.7% of our listing prices - more than any other company in the Greater Nashville area.

In East Nashville, Village's sold more homes than any other company with an increase of 24% from June. Our market share in 37206 increased 6% from the previous month to 28%.

In 37212, Village also sole more homes than any other company with an increase of 28% from June.

East Nashville Open House Blitz

2009-08-14T09:04:00.000-05:00

This Sunday, August 16 from 2-5pm, Village will hold an Open House Blitz in East Nashville. Many of our listings will be open to tour from 2-5pm. Just head over to the Five Points area and look for the purple pointer signs. Each home open on the blitz will have flyers with a map directing you to other homes participating.

2603 Westwood Avenue

2009-08-13T13:07:00.006-05:00

Renovated Brick Tudor in the Hillsboro-West End Neighborhood
4BR/2.5BA
2530 SqFt
$509,000
Virtual Tour

- Exceptional Master Suite Up
- Hardwood Floors
- Eat-In Kitchen
- Granite Countertops
- Stainless Appliances
- Large Living & Dining Rooms
- Two Fireplaces (Non Functional)
- Guest Suite on Main Level
- Front & Back Porches
- Great Yard

July Home Sales Are Promising

2009-08-12T11:45:00.003-05:00

Yesterday, the Greater Nashville Association of Realtors published their July home sales data. The good news? July home sales rose over the previous month. Home sales last month were only 11% below the previous year. Back in January, sales were down 41% from the same month in 2008. We have seen a trend each month this year where sales have continued to increase and the difference between the year before has narrowed.

Check out this article from the Tennessean with some theories on why sales are picking back up. (Hint: First-Time Homebuyers)

At the Village company sales meeting on Tuesday, the head of CityLife Lending (a Wells Fargo Home Mortgage affiliate) said that he and his fellow mortgage consultants feel like the bottom has passed. Rates are starting to climb again and are back over 5%. While this is still incredibly low in the history of the mortgage industry, it is not as low as the 4% rates we were seeing earlier this year.

On the CityLiving Team, we have seen our sales increase as well. We currently have 251 sales in 2009. Our goal this year is 500 transactions. We are halfway there!

Here's to a continuation of the upward trend. We hope you are feeling the improvement in the economy too, in whatever industry or business sector you are in.

Would-Be Homebuyers Test the Waters

2009-07-27T08:55:00.002-05:00

As a follow-up to Friday's post about the housing fair and first-time homebuyers getting into the market because of the federal tax credit, here is a link to the latest on this story from the Tennessean.

$8000 Tax Credit

2009-07-24T13:28:00.000-05:00

We've been talking about the $8000 tax credit for awhile now. It is a phenomenal program that we urge all first time homebuyers to take advantage of now, while they can. We've seen it help a lot of people jump over the fence and purchase a home, instead of continuing to rent. The article below was in the Tennessean this week and discusses how the tax credit has moved many buyers into the market and this in turn has helped get sales in a better place. For more details on the tax credit, click here.

Home Fair Could Open Door to Ownership
by Janell Ross

A bright green box near the center of Fox Ridge Homes' Web site makes at least one aspect of the federal stimulus package clear. It's filled with the images of $100 bills and the words "$8,000 Federal Tax Credit - Direct Stimulus to You!"

"I think what the tax credit does for renters is it makes them curious," said Chris O'Neal, a Nashville sales manager for Fox Ridge. "So it gets them out the door and looking at new construction or resales and seeing if that is really a possibility for them. It has stimulated sales for sure."

The company is one of nearly 50 homebuilders, financers, real estate agents and Realtors that will be represented at the mayor's second annual Nashville Housing Fair, 1-5pm Sunday at Sommet Center. It's free and open to the public, designed to provide an opportunity to learn about homeownership, the process of purchasing a home and the $8,000 federal tax credit for first-time homebuyers.

Homebuyers can earn the tax credit equivalent of $8,000 if they haven't owned a home in the last three years and earn a gross income of no more than $95,000 for individuals or $170,000 for married couples. It's part of the American Recovery and Reinvestment Act, signed into law in February, and applies to houses purchased as of Jan. 1. It ends Nov. 30.

There is some anecdotal evidence to indicate the credit is spurring sales in the Nashville area, said Mike Nichols, president of the Greater Nashville Association of Realtors.

"The less expensive homes are the ones moving faster and more often this year," Nichols said. "We don't track first-time homebuyers across the market...so we can only surmise that least some of those sales are your first-time buyers. I think what the tax credit has been is an incentive to go ahead and buy now because the clock is ticking on that opportunity."

No known groups are tracking the effect of the homebuyer tax credits, said Marsha Courchane, executive vice president of the Richmond, Va.-based American Real Estate and Urban Economics Association. "These measures are great when it comes to marginal buyers, those who are on the edge of a decision who can access credit and perhaps have a down payment," she said. "What seems to be keeping people out of the market where we do have lower prices and a lot of foreclosures is that some people cannot access credit."

Closings have risen steadily in Middle Tennessee since March but remain well below last year, a Greater Nashville Association of Realtors report shows.

Economic Indicators Improving

2009-07-23T13:25:00.004-05:00

This article is from Tuesday's Nashville Business Journal. Anything that talks about the market and economy improving makes us happy over at the CityLiving Team.

Report: Economic Indicators Improving

There’s yet another sign that the recession may be easing.

The Conference Board said Monday that its index of leading economic indicators rose 0.7 percent in June. That follows a 1.3 percent increase in May and a 1 percent rise in April.

"The recession has been losing steam since the spring, although very large job losses continue,” Ken Goldstein, a Conference Board economist, said in a news release. “Nevertheless, confidence is slowly rebuilding. Financial markets are less volatile. Even the housing market is stabilizing. If these trends continue, expect a slow recovery this autumn."

Seven of the 10 indicators that make up the New York-based Conference Board’s index rose, including building permits, stock prices and manufacturers’ new orders for consumer goods.

On Friday, the government reported new residential construction was up 3.6 percent in June.

Still, high unemployment continues to put a damper on things. Tennessee's unemployment reached 10.8 percent in June.

Sold Out!

2009-07-20T15:02:00.004-05:00

A sure sign the market is picking back up? We are officially SOLD OUT at Art Avenue Lofts downtown and The Glen in Hillsboro Village. Every last unit has sold!

Art Avenue Lofts - 32 Lofts & Penthouses

The Glen - 38 Flats & Penthouses

Rhythm at Music Row

2009-06-30T08:45:00.000-05:00

Nashville's newest high rise development on Demonbreun Street was featured in the Tennessean. This 14-story building completed construction a couple months ago and now has seven designer models available for tours daily. You can get a taste of what this building has to offer at http://www.rhythmnashville.com/. Prices at Rhythm for one and two bedroom condominiums start in the mid $200,000s. Click here to read the entire Tennessean article.

Missed Opportunity in Green Hills

2009-06-29T12:48:00.004-05:00

We stumbled across this post on William Williams' blog recently and thought it was worth sharing. William Williams use to be one of our favorite writers for The City Paper. He now has occasional articles published there or in other local pubs such as Nashville Lifestyles, and blogs online.

The mayor announced a few months back that there would be a Hillsboro Road improvement project coming soon. Right now, most Nashvillians dread Green Hills traffic heading into and out of the general Green Hills mall area. Great retail has come to Nashville in recent years and our city now boasts a Trader Joe's, Whole Foods, West Elm, Anthropologie, among many other exciting national retailers. There have also been many condo and town home developments built past the mall. With a post office, a library, groceries, and other retail all within a two mile radius, Green Hills has urban potential. What is holding it back is its lack of sidewalks and curbs allowing pedestrian-friendly traffic.

Check out William Williams' blog post on this topic with some interesting findings regarding TDOT's planned road improvement project. Click Here

Important Mortgage Industry Updates from CityLife Lending

2009-06-22T12:58:00.000-05:00

Effective July 31st, new RESPA (Real Estate Settlements Procedures Act) changes are coming to the mortgage industry that will change the way mortgage loans are processed. The new guidelines will require a client to receive their settlement statement four days prior to closing. This means lenders will need to have closing packages to the title company six days before a closing. That makes a 30 day closing essentially a 24 day or less closing, depnding on how quickly the client acts to begin the mortgage process. Another and more impactful change is that the settlement statement must match the initial good faith estimate, otherwise a new disclosure is required along with a new four day waiting period.

CityLife Lending will be working to redisclose a final Good Faith Estimate seven days before closing. This should ideally address any changes in title, closing or lender fees and eliminate any potential obstacles. Should you have any questions about these changes, don't hesitate to contact one of CityLife Lendings Home Mortgage Consultants.

CityLiving Bus Tour

2009-06-19T14:30:00.000-05:00

Back by popular demand, we'll be taking one of our infamous bus tours of Nashville's urban developments on Sunday, June 28 from 1-4pm. Mark will lead this free tour with stops at 5th & Main, West End Station, Velocity in the Gulch (be one of the first to tour!), and many others. This is the most efficient way to see the hottest lofts, condos and homes in Nashville, and to hear the latest on Nashville's real estate market from the urban expert. Visit our web site to see the full itinerary. RSVP online here to reserve your seat on the bus. You can also call 615.383.6964 to RSVP for the tour.

Village Sales Up 85% in May

2009-06-17T14:57:00.000-05:00

We are happy to report that Village Real Estate Services sold a total of 111 units in May, up 85% from April. We are consistently seeing more contracts come through our offices and our agents are busier than ever!

In May, Village received 94.8% of our original listing prices. We are dominating in 37206 (East Nashville) and 37212 (Hillsboro-West End/Belmont-Hillsboro). Village sold a total of 14 units in 37206 in May - more than any other company. Check out the details here. We also sold a total of 11 units in 37212 - again, more than any other company. A graph and specifics are here.