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VOL. 40 | NO. 45 | Friday, November 4, 2016

No matter who wins, rates will rise, sales will slow

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Next week there will be an election, and that is all I shall say about that. Maybe a little more. If Hillary Clinton wins, interest rates will rise and real estate will slow slightly. Should Donald Trump win, look for real estate to slow somewhat and rates to increase.

In the unlikely event of a tie, there should be a decline in overall sales, and interest rates will tick upward.

By mid-2018, rates will have crept to 5.5 percent, and sales will have fallen into normalcy. By then, the mass transit system will have been funded and will be under construction.

The traffic lights will have been synchronized, lane closings will be more organized and with construction slowed, fewer street closings.

With millennials leading the way, sales of condos at 500 square feet or less will outnumber sales of more than 5,000 square feet. Cars will be on their way out.

Years ago, when some predicted electric cars would scoot through the city, there were skeptics. As we settle into what some consider the second millennium, cars will go the way of vinyl records, leading to a housing transition that will reverse the trends of the 1960s suburban migration.

Two thirds of wild life on the planet will be gone, according to the Living Planet Index, this after although 58 percent of the animals were eliminated between 1970 and 2012.

In Nashville, we are seeing the deer populations being transplanted and now grazing on the lawns of new developments they share with rabbits, squirrels, chipmunks, coyotes, foxes and groundhogs.

Some may see the migration of armadillos into the area as a positive sign. There were few of these armored opossums in town a few years ago, but their corpses now line the highways. As cars vanish and remote residential developments slows, hopefully, the wildlife can rebound.

Speaking of wildlife, Nashville has become the Bachelorette Party capital of the United States, if not the world. Many of those that have strayed too close to a pedal tavern filled with the celebrants have witnessed firsthand that the term wildlife need not be reserved for those in the animal kingdom.

While the economic impact of this phenomenon is stimulating, the logistics of the rolling soirees are challenging. Metro can fill its coffers with these revenues that have allowed housing initiatives, like the Barnes Fund, to be funded to the tune of $10 million.

Named for community leader, the Rev. Bill Barnes, a champion for all things good, the Barnes Fund provides assistance to those whose income falls below the median income in their area.

This program funds several workforce housing initiatives for those purchasing homes, renting properties and for developers that include affordable housing opportunities within their projects.

Sale of the Week

The Terrazzo condominiums completed construction in 2009, the year Nashville entered the Great Recession.

Designed by the renowned Manuel Zeitlin and developed by Steve Armistead and Bill Barkley of Gulch development fame, the project was widely anticipated by the real estate world.

When Mayor Bill Purcell broke ground, he was excited to have development stretching across Division.

With prices pummeled by the Recession, the development initiated several actions to move the units, changing brokers and even resorting to auctioning a few. Finally, the tides turned, and the Lipman Group’s Michelle Maldonado and her group of Nichole Holmes and Michelle Trueba sold the remaining units in the development.

Located on the sixth floor of the condominium is a one-bedroom, one-bath, 891-square-foot floor plan that sold for $190,000 in 2009, $235,000 in 2012 and, last week, for $338,000.

The Terrazzo offers a bit more square footage for the price than its neighbor across the street, the Icon, and considerably more than the 1212 development.

The sale of unit 608 includes Italian cabinets and gas cooking, according to Mary Spots of the real estate firm of Rochford /Bell.

Since she knows the building better than most, Michelle Maldonado once again represented the buyers.

Richard Courtney is a real estate broker with Christianson, Patterson, Courtney and Associates and can be reached at richard@richardcourtney.com.

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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