Thursday, April 11, 2013

Currently the inventory of homes offered for sale based on current list prices is as follows:



Sales Rate for High Priced Homes in Middle Tennessee






2011




2012




Number of Listings 4/4/2013




Current Months of Inventory based on 2012 Sales




$1,000,000




$1,099,999




31




33




29




10.5




$1,100,000




$1,199,999




25




31




38




14.7




$1,200,000




$1,299,999




25




33




39




14.2




$1,300,000




$1,399,999




14




21




24




13.7




$1,400,000




$1,499,999




14




13




28




25.8




$1,500,000




$1,599,999




10




13




19




17.5




$1,600,000




$1,699,999




0




8




17




25.5




$1,700,000




$1,799,999




4




6




14




28.0




$1,800,000




$1,899,999




3




4




6




18.0




$1,900,000




$1,999,999




5




2




12




72.0




$2,000,000




$2,499,999




8




14




26




22.3




$2,500,000




$2,999,999




10




9




25




33.3




$3,000,000




$3,999,999




3




3




19




76.0




$4,000,000




and Up




0




4




16




48.0




Based on listings sold in MLS on sites of less than 20 acres - Study area includes Davidson, Williamson, Cheatham, Robertson, Sumner, Wilson and Rutherford Counties.



This study indicates that currently there is a minimum of 1.46 years worth of inventory in each price range over $1,500,000, with 6.3 years worth in the 3 to 4 million dollar range.

Additionally, we examined sales of homes with final list prices from $1,500,000 to $2,900,000, that sold from January 1, 2011 to April 9, 2013, on lots of 20 acres or less.  In 2011 the average total marketing time from original listing to accepted contract was 456 days, in 2012 the average was 301 days, and through the first quarter of 2013 the average was 627 days. Half year comparisons also showed declining marketing times, with the first half of 2011 showing an average of 504 days, second half of 2011 - 429 days, first half of 2012 - 330 days, and the second half of 2012 - 276 days.

Not surprisingly with a decrease in the average marketing time there was a corresponding increase in average original list price to sales price ratio. In 2011 it averaged 80.45% and in 2012 it had increased to 83.19%. Noting that year to date marketing times in 2013 are higher, and the original list price to sales price ratio has declined to 79.18%.

Thursday, April 4, 2013

http://bit.ly/Y0cN24

Home values performed 42 percent better when located near public transportation

Market Watch
Wednesday, April 03, 2013
Location, location, location near public transportation may be the new real-estate mantra according to a new study released by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR). Data in the study reveals that during the last recession, residential property values performed 42 percent better on average if they were located near public transportation with high-frequency service.

“When homes are located near public transportation, it is the equivalent of creating housing as desirable as beach front property,” said APTA President and Chief Executive Officer Michael Melaniphy. “This study shows that consumers are choosing neighborhoods with high-frequency public transportation because it provides access to up to five times as many jobs per square mile as compared to other areas in a given region. Other attractive amenities in these neighborhoods include lower transportation costs, walkable areas and robust transportation choices.”

“Higher home values reflect greater market demand for areas near public transportation,” said NAR Chief Economist Lawrence Yun. “Transportation plays an important role in real estate and housing decisions, and the data suggests that residential real estate near public transit will remain attractive to buyers going forward. A sound transportation system not only benefits individual property owners, but also creates the foundation for a community’s long-term economic well-being.”

The study, The New Real-Estate Mantra: Location Near Public Transportation, investigates how well residential properties located in a half-mile proximity to high-frequency public transportation or in the “public transit shed” have performed in holding their value during the recession compared to other properties in a given region.

While residential property values declined substantially between 2006 to 2011, properties close to public transit showed significantly stronger resiliency. The following are a few examples from the study: In Boston, residential property in the rapid transit area outperformed other properties in the region by an incredible 129 percent. In the Chicago public transit area, home values performed 30 percent higher than the region; in San Francisco, 37 percent higher; Minneapolis-St Paul, 48 percent; and in Phoenix, 37 percent higher.

The study looked at five regions, which illustrate the types of high-frequency public transit systems throughout the country. High-frequency public transportation includes subway (heavy rail), light rail and bus rapid transit. This sample accurately projects the nationwide average (42 percent) variance among properties located near high-frequency public transportation and those that are located further away from public transit.

“Stable property values in areas with public transit access have a number of policy implications,” Melaniphy said. “As Congress and state and local governments look for ways to accelerate economic growth, this study shows that investing in public transportation is a boon to revitalizing our economy.”

“When consumers choose a home, they also choose a lifestyle. Shorter commutes and more walkable neighborhoods matter to a growing number of people, especially those living in congested metro areas,” Yun said.

Wednesday, April 3, 2013

Home prices rais 9.2% in past year - CoreLogic

Nashville Post reports "There's no sign of weakness yet in local home prices, according to research firm CoreLogic. In fact, we may be getting slightly frothy for a market that supposedly doesn't see the extremes of cities such as Miami or Vegas. February prices of non-distressed properties clocked in 9.2 percent higher than the mark of the year before, up from 6.3 percent in January. Throw in distressed homes and the increase was 'only' 7 percent. The national numbers are equally impressive."