Successful May Keeps Nashville Pacing with National Home Sales Trends

NASHVILLE, Tenn. (June 7, 2016) – There were 3,698 closings reported for the month of May, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an increase of 3.9 percent over the 3,558 closings reported for May 2015.

     Year-to-date closings total 14,583. That is an 8.8 percent increase compared to the 13,402 closings reported through May 2015.

     "May was another strong month for the housing market,” said GNAR President Denise Creswell. “The successes and challenges we face locally are in-line with the rest of the country. 

     “Our median price rose 10 percent in May compared to 2015. The most recent national numbers from April show median price is up 6.3 percent, so we’re similar in growth. Middle Tennessee is also following national trends with housing supply. Our inventory levels made slight gains in the condo and multi-family areas in May compared to the previous month, but are still down overall when compared year-to-year. Inventory levels nationally are also struggling, down 3.6 percent for April of this year compared to 2015.”

     A comparison of sales by category for the month of May is:

  May 2015 May 2016
CLOSINGS 3,558 3,698
 Residential 2,953 3,065
 Condominium 411 403
 Multi-Family 19 25
 Farms/Land/Lots 175 205

     There were 3,930 sales pending at the end of the month, compared to the 3,730 pending sales at this time last year. Single-family homes averaged 57 days on the market in May.

     The median residential price for a single-family home during May was $258,900 and for a condominium it was $194,000. This compares with last year’s median residential and condominium prices of $235,000 and $175,000, respectively.

    Inventory at the end of May was 12,122, down from 13,764 in 2015. The current inventory of properties by category, compared to last year, is:

  May 2015 May 2016
INVENTORY 13,764 12,122
 Residential 9,067 8,281
 Condominium 980 783
 Multi-Family 130 97
 Farms/Land/Lots 3,587 2,961

     “Last month, Realtors from across the country met in Washington, D.C. for the National Association of Realtors Legislative Meetings. One of the biggest takeaways from those meetings was the proposed changes to the FHA condominium loan program,” said Creswell. “The changes announced by Housing and Urban Development Secretary Julian Castro address streamlining the recertification process, reducing the owner-occupancy requirements and the limits on the types of property insurance FHA considers acceptable coverage.

     “Condos are often excellent and affordable properties for first-time buyers. As competition is so tough in the entry-level market, anything that can be done to make homeownership more attainable for eligible first-time buyers is a positive move in the industry,” said Creswell.

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