The housing market in Davidson County may be leveling out, according to monthly data from the Greater Nashville Realtors.
The association’s data for April showed a slight 1.3 percent increase in closed home sales from the same month last year, indicating the region’s red hot housing market may be cooling to a more comfortable temperature.
In comparison, March saw an 8.9 percent increase over the previous year and the first quarter saw in 9.7 percent increase over 2016 in Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson counties.
“The second quarter of home sales, which is typically one of the strongest, started with positive gains,” said Scott Troxel, GNR president. “Year-to-date sales are up by almost 1,000 units, making it likely we will see 40,000 or more closings this year, something we haven’t seen since 2006.”
In the GNR region, 3,284 homes were sold in April, only 41 more than were sold in April 2016.
“The struggle between low inventory and rising sales is beginning to even out. While supply is increasing, it has a way to go still to meet up with buyer demand. All indicators show we will continue to have growth in our market at a more even pace,” Troxel said.
He pointed to a lack of inventory that continues to plague the housing sector as the reason for the cooling of the market. At the end of April, inventory in GNR’s region was 11,062, down from 12,244 in 2016.
The low inventory is having a compound effect of putting pressure on home prices.
The median residential price for a single-family home during April was $275,000 and for a condominium it was $195,255. This compares with last year’s median residential and condominium prices of $250,000 and $193,473, respectively, according to GNR.
Nashville isn’t alone in its lagging inventory numbers. Metro areas across the nation are experiencing similar problems, according to the National Association of Realtors.
Single-family home prices last quarter increased in 85 percent of measured markets, with 152 out of 178 metropolitan statistical areas showing sales price gains in the first quarter compared with the first quarter of 2016. Only 25 areas recorded lower median prices from a year earlier.
The national median existing single-family home price in the first quarter was $232,100, which is up 6.9 percent from the first quarter of 2016 ($217,200) and the fastest growth since the second quarter of 2015 (8.2 percent). The median price during the fourth quarter of 2016 increased 5.9 percent from the fourth quarter of 2015.
“Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” said Lawrence Yun, NAR chief economist.
He said the continual supply shortages ignited faster price appreciation across the country in the first quarter.
Yun credited healthy job markets, like the Nashville’s, as the source of increasing home values.
“This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes,” Yun said.
According to GNR, there were 3,540 sales pending at the end of the month, compared to the 3,198 pending sales at this time last year. The average number of days on the market for a single-family home was 47 days.