Wednesday, December 5, 2007

Home prices start to feel economic pinch - Triangle Business Journal:

Home prices start to feel economic pinch - Nashville Business Journal:

Home prices are rising in most areas of Nashville, but some pockets are taking a hit from high inventory and showing falling prices.

Nine out of 38 ZIP codes in the Nashville area reported price declines in the last six months. The same study a year ago showed only one ZIP code with a price decline, says Jeff Jolly, a Crye-Leike Realtor who did the study.

The ZIP codes that cover Belle Meade and Germantown were the only two areas where sales increased. Those areas had the highest price jump of 27 and 20 percent respectively.
Overall, sales are down 16.6 percent in the six-month time frame.

Agents maintain the numbers show the market is slow, but remains strong when compared to other U.S. cities.

Wealthier buyers in areas such as Belle Meade are less affected by economic downturns, and Germantown has become a hot new spot to live in the downtown area, says Shirley Zeitlin, owner of Zeitlin & Co.

But new homes going up in Germantown which command higher prices and a few high-priced home sales in Belle Meade could have helped bring up the average, says Richard Exton, principal appraiser at Manier & Exton Real Estate Appraisers.

Rural Joelton reported a 9 percent drop, the highest of the 38 areas, and one Franklin ZIP code, 37069 - the most expensive with an average price of $550,300 this year - saw a 3 percent drop in average price from $567,344 last year. MORE
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