» Subscribe Today!
The Power of Information
Home
The Ledger - EST. 1978 - Nashville Edition
X
Skip Navigation LinksHome > Article
VOL. 45 | NO. 47 | Friday, November 19, 2021

How can sales decline 7% in red-hot housing market?

Print | Front Page | Email this story

The late George Carlin was a comedian who enjoyed wordplay and dissecting the English language. In particular, he often examined phrases used in everyday language that, if taken literally, would have a completely different meaning.

He once, for example, chose the phrase “legally drunk.”

“If it is done legally,” he asked, “what’s the problem?” He noted an oft-used statistic used in public service announcements meant to warn drivers to be vigilant at all times, even if they are near their destination.

The PSA stated something to the effect that 90% of all automobile accidents occur within 1 mile of home. “I guess that means we should never go home,” he rebuffed.

The information contained in the latest news release from the Greater Nashville Realtors reads like a George Carlin joke in that it includes numbers that – while accurate mathematically – fall into the category of head-scratchers.

For example: Sales for the month of October reflect a 7% decrease over sales for October 2020.

A 7% decrease is a significant drop and, in most cases, would signal a market in decline. Any buyer attempting to purchase a home during the past eight months would find in inconceivable that the market was slower than last year.

The problem is inventory. Last October there were scattered multiple-offer scenarios when new homes hit the market. Inspections, appraisals and financing contingencies were expected and accepted practices. However, now it is as the raven once screeched: “Nevermore!”

At the close of October 2021, there were 7,457 homes on the market in the Middle Tennessean area. At the close of October 2021, there were 5,260. When there are no homes to sell, sales drop. There are more buyers than sellers.

When the scales shift toward the sellers, prices rise. The Greater Nashville Realtors release reflects that economic reality. For single-family homes, the median price jumped from $349,000 to $429,900 from October to October. Condominium prices rose from $245,000 $295,000.

In Davidson County’s upper-end market, sales increased from 40 of $1 million or more in October 2020 to 47 last month.

Of those sales, there were 29 in the $1 million-$2 million range last October and 33 this October.

The Octobers played to a tie with 10 each year in the $2 million-$3 million range.

October 2020 had one sale of $3 million or more. October 2021 had one sale in the $3 millions, two sales of $5 million-$6 million and one sale topping $6 million.

“Red-hot market down 7%” is a headline Carlin might have had some fun dissecting. But that’s the state of Nashville real estate in 2021.

Sale of the Week

Many of the Planned Unit Developments (PUDs) around town are denying bulldozers the opportunities to destroy the homes that exist in the properties, especially if they were quality homes that could be used as either a residence or serve as the clubhouse for the new development.

Such is the case of the mansion at 210 Burlington Place in Green Hills. Listed for sale and marketed by Jessica Averbuch and Melanie Baker, the home is described as “a piece of Nashville history.” In their description of the home, Baker and Averbuch wrote “Designed by Bryant Fleming, noted architect of Cheekwood, the Burlington mansion was relocated from its original home on Elliston Place and restored using the home’s original materials.” It was constructed in 1932 and considered an historic home for that reason.

The home is one of 18 homes that sold for more than $1 million last week, this prize going for $3.4 million, down from the original list price of $4.8 million. Melanie Baker and Jessica Averbuch are part of the real estate landscape in the upper-upper end market, and a $3.4 million sale is nothing new for them.

With 10,457 square feet, the home required a buyer who willing to maintain the enormous residence. Steven Dodson, a leader at Park, had the right buyer. Averbuch and Baker hail from Zeitlin Sotheby’s International Realty.

The manse includes seven bedrooms, six full bathrooms and four half bathrooms. It is a unique property surrounded by smaller homes that were constructed as the property was developed.

The sale went from listing to close in 74 days.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at richard @richardcourtney.com.

Follow us on Facebook, Twitter & RSS:
Sign-Up For Our FREE email edition
Get the news first with our free weekly email
Name
Email  
TNLedger.com Knoxville Editon
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 0 0
MORTGAGES 0 0 0
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 0 0 0
BANKRUPTCIES 0 0 0
BUSINESS LICENSES 0 0 0
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0