Mortgage Rates in Nashville Bumped Up

mortgage rates in nashville go upFewer consumers sought home loans last week as the national average interest on 30-year fixed mortgages bumped up to 5.02 percent from 4.89 percent the week before, the Mortgage Bankers Association reported. At the same time, the average rate for a 15-year fixed loan rose from a record low of 4.32 percent back up to 4.44 percent. Demand for mortgages was down 1.8 percent overall for the week, with requests for purchase loans sliding 5 percent and refinance applications dipping by 0.1 percent. MBA said it anticipates 30-year loan rates averaging about 5 percent this quarter but rising as high as 5.6 percent by late 2010.

It appears to be safe to wait until the end of the year to make a real estate purchase in Nashville. We are all trying to time the bottom of the market and that can be a very difficult feat to accomplish. According to my monthly market analysis reports, the intersection of low prices, low mortgage rates and the optimal time to acquire a Nashville condo or home will be the very end of 2009 to beginning of 2010.

Nashville Sues to Seize Convention Center Land

New Nashville Convention Center Location

Thanks to the Tennessean for breaking the story about the metro Nashville eminent domain filings. On October 20th, 2009 in the article entitled Nashville files suit to seize 7 properties for convention center Michael Cass writes:

“Metro government officials have taken the first steps toward seizing downtown property for a proposed convention center.

The Metro Development and Housing Agency (MDHA)  filed condemnation suits against seven groups of property owners in Davidson County Circuit Court on Friday. The agency said in the petitions that it had deposited more than $31.2 million to pay what it considers “just compensation” to acquire the properties by eminent domain.

The county property assessor’s office appraised the properties for more than $24.3 million collectively this year.

Metro is considering building a 1.2 million-square-foot, $600 million convention center on about 15 acres south of Sommet Center and First Baptist Church. Mayor Karl Dean and the Metro Council decided last summer to borrow about $62 million to start acquiring property, even though financing plans for the center and an attached hotel are still coming together.

Joe Cain, MDHA’s development director, said last week that the agency would continue negotiating with property owners even after starting eminent domain proceedings. Cain said the lawsuits were necessary to ensure that the city has the property in hand by January.

MDHA has already reached agreements with seven other property owners.”

The Properties – $31.2M would acquire downtown land

In its court filings, the agency said it was willing to pay:

• $2,835,000 for Christie’s Cabaret, which was appraised for more than $2.33 million.

• $14.8 million for a 5.66-acre site owned by Tower Music City II LLC, part of Tower Investments. The site was appraised for $12,550,600 (parcel for the hotel portion of the convention center).

• $4.8 million for the Musicians’ Hall of Fame, which was appraised for a little more than $3 million.

• $1,774,300 to Nashville Downtown Platinum LLC for two parcels appraised for $1,157,300.

• $905,000 to Hugh Cates, A.M. Downing, Richard Downing, Donna C. Downing and Lamar Advertising for a site appraised for $637,100.

• $4,906,500 for the Greyhound bus station, which was appraised for $3,775,500.

• $1.25 million to Billy D. and Beverly G. Pitt for a parcel appraised for $926,400.

Councilman Jim Gotto has proposed a Metro Charter amendment that would give the council the right to approve or reject any use of eminent domain.

The council previously delegated that authority to MDHA by setting up redevelopment districts in areas that are considered blighted.”

It is also now rumored that the Medical Trade Center or “Medical Mart” will also receive final city approval within the next 45 days. The medical trade center could potentially take over the current convention center building located on Broadway. In the mean time, it is rumored that the medical trade center will attempt to lease the vacated Nissan space in the AT&T Building or the vacant space in the brand new 30-story Pinnacle office tower on 3rd Avenue South.

I am also struck by the offers MDHA has made and how much higher than appraised value they are.

Shirley Zeitlin fired from Terrazzo Condo Project

Has Shirley Zeitlin’s company Zeitlin Realtors been fired by the Terrazzo’s financial backer Canyon Johnson? Upon a quick look at the MLS, all of Zeitlin’s listings have been removed and upon visiting the sales center a few days a ago, it was completely unmanned.

Zeitlin has been the Terrazzo’s only listing agent for more than 3 years and was handcuffed by a declining market and an unrealistic developer in Crosland and director Bill Barkley.

The $68 million dollar Terrazzo is Nashville’s only LEED certified Green condo high-rise and contains 117 luxury condos, 75,000 square feet of class A office space and 20,000 of high-end retail space.

In other news, Zeitlin and Company was awarded the listing contract at John Coleman Hayes’ The West End luxury condo project just over 3 months ago. Since listing the project, there have been no new sales or pendings entered into the MLS. However, the MLS does show that several of the condos have been reduced in price since Worth Properties listed the project for Mr. Hayes.

The new listing agent is rumored to be Michelle Maldonado with the Lipman Group. The Lipman Group is the local affiliate for Sotheby’s and has not listed a condo project of this size in the past.

See all condos for sale in The Terrazzo

10 Best Condo Buys so far in 2009

Sometimes we all wonder how well we have done when investing in real estate and usually there is not a good way to benchmark our success or failure. Here is a list of the 10 best condo buys in Nashville so far in 2009. Keep in mind that the developer purchases probably also have a ton of concessions like closing costs, upgrades, paid HOA dues, free parking spaces and whatever else will get the deal done.

Terrazzo Living Space

Buildings: Adelicia, Bennie Dillon, Enclave, Encore, Icon and Viridian

Building (closing date), condo #, total price, price per square foot

Viridian (resale 3.18.09 ) #2001, $330K, $225/SF (Viridian avg PPSF for dev sales was $298)

Encore (from dev 5.29.09) #715, $173K, $200/SF (Encore avg PPSF for dev sales was $318)

Encore (from dev 2.27.09) #815, $175,200, $203/SF

Encore (from dev 1.23.09) #1911, $160K, $223/SF

Icon (from dev 6.10.09) #611, $149,900, $245/SF (Icon avg PPSF for dev sales is $345)

Icon (from dev 8.7.09) #1114, $211,900, $257/SF

Adelicia (from dev 2.11.09) #907, $249,900, $253/SF (Adelicia avg PPSF for dev sales was $348) This great deal was achieved in the closeout of the last 10% of units.

Enclave (resale 3.31.09) #159, $280K, $149/SF (Enclave avg PPSF for dev sales was $252) This incredible deal was a foreclosure that sat for a few months.

Enclave (resale 3.18.09) #325, $279,900, $180/SF

Bennie Dillon (resale 9.23.09) #1203, $152,500, $162/SF (BD avg PPSF for dev sales was $246)

Long Term Nashville Mortgage Rates Close to Records

Mortgage Rates 10-12-09

30 fixed mortgages moved closer to the all-time low of 4.82 percent reached in May 2009, falling to 4.87 percent last week from 4.94 percent a week earlier, according to Freddie Mac. Homeowners who refinance have an opportunity to reduce their payment on a $200,000, 30-year, fixed loan by nearly $134 a month from a year ago, when long-term rates averaged 5.94 percent. Also, 15-year loans fell to 4.33 percent, and 5 year adjustable-rate mortgages dropped to 4.35 percent; but 1 year ARMs rose to 4.53 percent.

I cannot stress how opportune this timing is for purchasing a new home. Nashville has entered into the period of seasonally low home sales which lead to lower prices. Additionally, Nashville home loan rates are artificially low (cannot be maintained much longer) and there is a decent amount of inventory from which to choose. Sellers have been pushed back onto their heels and aggressive offers are rewarded more than usual. The next 3 months could be described as a “buyer’s perfect storm”.

Nashville Named Friendliest City in America

nashville boat skyline

Nashville has once again been named America’s Friendliest City from Travel + Leisure magazine after receiving the same honor in 2004 and 2005.

The publication asks readers to rate 30 U.S. cities based on culture, shopping, restaurants, nightlife and more. The survey is conducted each summer.

This year, Nashville also ranked second in the nation for live music and concerts and fourth for an affordable getaway.

“It is most appropriate that Nashville has again been named America’s friendliest city,” Nashville Mayor Karl Dean said. “Our hospitality and our people are what make Music City the special place it is. Nashville is a place people want to visit, over and over again. And because we’re such an attractive place to visit, our tourism industry is a key part of our economic engine. It’s an industry we need to invest in and celebrate.”

Nashville was also ranked among the Top 10 for safety, affordable hotels, bed and breakfasts, singles/bar scene and wild weekends.

With the number of Nashville foreclosures and short sales declining, you might be missing your chance to live in this wonderful city at a fraction of the cost.

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