Overall residential property closings up 24 percent amid threat of rising interest rates
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November residential property closings rose 24 percent in the Nashville area from a year ago, and there were more than twice as many home sales for $1 million or more.
The year’s end approaching and the threat of rising interest rates are among factors that played into the overall 24 percent increase to 2,397 closings last month, said Denise Creswell, president of the Greater Nashville Association of Realtors.
“Many people locked in their rates in October in anticipation of rising interest rates after the election, and they have edged up slightly,” she said, referring to mortgage rates rising from 3.6 percent just before the elections to 4.1 percent on Wednesday. “We will likely see the interest rate factor be a boost to home sales in December as well.”
GNAR’s tracking shows 42 single-family residential property sales closed in November for $1 million or more, up 133 percent from November 2015. There were 31 such sales in 2014 and 27 in 2013.
Exton cites Multiple Listing Service data showing 38 sales of condos and homes with 20 acres or less last month versus the 18 in November 2015. Through November this year, there has been 457 sales at that price versus 360 over that same period last year.
Steve Fridrich, the owner and managing broker at Fridrich & Clark Realty LLC, cautioned against reading too much into November’s increased sales of million-dollar-plus residential properties.
“It’s still been a very strong steady market, but numbers at different times of the year reflect different things,” he said. “With interest rates still being low, it’s still an attractive time for people to buy in that price range. This is first time in an election year that I actually had clients say with the uncertainty in the market, they wanted to wait ’til after the elections.”
The overall Nashville area inventory of 7,540 single-family residential properties at the end of November was down 8 percent from a year ago and represented a just over three months’ supply.
The median price of a single-family home was $259,900 for November, up 12 percent from a year ago. November’s median price of a condo rose 25 percent year-over-year to $182,390.
On average, homes sold in November spent 49 days on the market. That’s the lowest average number of days in GNAR’s tracking.
With 2,774 sales pending at the end of November, Creswell expects a strong end to 2016 in part as new construction homebuilders look to get properties off their books to have a fresh start next year.
Meanwhile, separate tracking by the Williamson County Association of Realtors shows 399 home sales closed last month, up 15 percent from November 2015. Year-over-year, the median price of a single-family home rose 7.6 percent to $443,507.
Million-dollar home sales
Single-family residential property (home) sales closed in November for more $1 million or more:
2013: 27 properties
2014: 31 properties