Icon in the Gulch Big Winner or Buyers?

2009 was supposed to be a horrible year for Nashville condo sales, yet the Icon in the Gulch was able to sell and close 84 new condo contracts. By the pure number of closings, the Icon in the Gulch was certainly the big winner in terms of gross number of sales, but many may be surprised to learn that 84 condos only represents about 20% of the 419 unit building, the biggest residential condo building in Nashville. By my calculations the Icon is now 50% closed out leaving over 200 condos yet to be closed and that may represent a liability to current condo owners/buyers whose floor plan has not sold well during 2009.

icon in the gulch

As an example, the Verge floor plan is a sizable 1,100+ square foot 2 bedroom condo located in the midrise portion of the building and according to the tax record, none sold in 2009. 8 Verge condos did sell in 2008 that ranged in price from $331,000 to $411,250, but that still leaves 40 Verge units that remain to be contracted. Clearly, not many buyers are aware of these eccentricities since this information has not been made public, but this information is available from the Davidson County Register of Deeds office in downtown Nashville.

There are many different floor plans, views, floor levels, etc in the Icon in the Gulch and many have sold quite well. My point is that buyers should to seek out the full story prior to jumping into a purchase with both feet. Should you choose to utilize the services of a real estate agent, your condo will not cost more money as the buyer agent’s commission is paid by the seller, not by you. In other words, if you are not using one of 3 buyer’s agents who have sought out all of the sales information in the building, not only are you buying without all of the pertinent information, you are missing out on what is essentially free advice, representation and expertise. The Icon in the Gulch is a very desirable building with excellent amenities and community, but there are quite a few monetary pitfalls a buyer can avoid with the proper advice to maximize your condo purchase.

Email Grant to see how I can help. I can answer questions like: are you paying too much? Is the condo you like in high demand or low demand? How many of your floor plan are left to sell? Is the Icon in the Gulch the best condo investment in Nashville? Am I receiving all of the seller concessions I could negotiate? Will the Terrazzo condo prices affect my condo’s future resale value? As well as many other questions and concerns.

View all condos for sale in the Icon in the Gulch

2010 Mortgage Rate Predictions

Nashville mortgage rates ended 2009 above 5 percent, with Freddie Mac reporting 30-year fixed rates at an average 5.14 percent, still very affordable by historical standards. Although higher long-term borrowing costs late in the year could signal further increases for 2010, new data from Wells Fargo, JPMorgan Chase, and the Mortgage Bankers Association indicates more borrowers are refinancing into 15-year loans in hopes of paying off home debt faster. According to the Mortgage Bankers Association, 15-year fixed loans accounted for nearly 20 percent of applications in October 2009 – up from 9.1 percent in October 2008 and 7.5 percent in October 2007.

The jumbo mortgage market in Nashville will probably see some programs re-introduced, but underwritten more conservatively with larger down payment requirements. No income verification programs may return at premium rates, but from sources other than conventional lenders. No asset verification programs are unlikely in 2010.

Here are a couple mortgage predictions that I agree with from Boston.com’s Sam Schneiderman:

  • Mortgage guidelines will tighten then relax. Some may become specific to certain types of markets.
  • Mortgage workouts will be practiced by attorneys that master them. Most lenders will modify only as a last ditch effort to save money.
  • Interest rates will go up, but probably not as high as many are predicting, possibly due to government intervention.
  • Financing will be available to those that meet traditional “pre-boom” underwriting guidelines and have the credit score, down payment and job security lenders want to see.
  • Some seller financing is likely to become more prevalent, especially toward the higher end of the market and in the small multi-family and investment property market.
  • Residential buyers will buy because they need a long-term place to live and want to control their own environment and costs. Investors will buy for the long term to lock in today’s rates.

World’s Worst Predictions – Famously Wrong Predictions

While just a few of these predictions pertain to the real estate world, it is important to remember that even the most trusted sources can be completely wrong. These predictions are a reminder that we constantly need to perform due diligence in a best effort to make accurate predictions. I always strive to provide Nashville will the best real estate information available and to make calculated predictions based upon trends, news and the raw data.

“The exact timing and the strength of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008.”
– Lawrence Yun, Chief Economist, National Association of Realtors, January 2008

“Theoretically, television may be feasible, but I consider it an impossibility – a development which we should waste little time dreaming about.”
– Lee de Forest, inventor of the cathode ray tube, 1926

“I think there is a world market for maybe five computers.”
– Thomas J. Watson, Chairman of Board of IBM, 1943

“It doesn’t matter what he does, he will never amount to anything.”
– Albert Einstein’s teacher to his father, 1895

“It will be years – not in my time – before a woman will become Prime Minister.”
– Margaret Thatcher, 1974

“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”
Western Union, internal memo, 1876

“We don’t like their sound, and guitar music is on the way out.”
Decca Recording Company reflecting the Beatles, 1962

“Who the hell wants to hear actors talk?”
– H.M. Warner, Warner Brothers, 1927

“640k ought to be enough for anybody.”
– Bill Gates, 1981

“Louis Pasteur’s theory of germs is ridiculous fiction.”
– Pierre Pachet, Professor of Physiology at Toulouse, 1872

“Computers in the future may weigh no more than 1.5 tons.”
Popular Mechanics, 1949

“We don’t need you. You haven’t got through college yet.”
– Hewlett Packard’s rejection of Steve Jobs, who went on to found Apple Computers

King George II said in 1773 that the, “American colonies had little stomach for revolution.”

An official of the White Star Line, speaking of the company’s newly built flagship, the Titanic, launched in 1912, declared that the ship was unsinkable.

In 1939 The New York Times said, “the problem of TV was that people had to glue their eyes to a screen, and that the average American wouldn’t have time for it.”

An English astronomy professor said in the early 19th century that, “air travel at high speed would be impossible because passengers would suffocate.”

“Airplanes are interesting toys, but they have no military value.”
– Marshal Ferdinand Foch, 1904

“With over 50 foreign cars already on sale here, the Japanese auto industry isn’t likely to carve out a big slice of the U.S. market.”
Business Week, 1958

“Whatever happens, the U.S. Navy is not going to be caught napping.”
– Frank Knox, U.S. Secretary of the Navy, December 4, 1941

“Stocks have reached what looks like a permanently high plateau.”
– Irving Fisher, Yale University, October 16, 1929

“By the year 1982 the graduated income tax will have practically abolished major differences in wealth.”
– Irwin Edman, professor of philosophy Columbia University, 1932

“The bomb will never go off. I speak as an expert in explosives.”
– Admiral William Leahy, US Atomic Bomb Project, 1943

“Americans will never stop gambling and Las Vegas will never stop growing, we’re primed to become the largest city in the U.S.”
– Oscar Goodman, Mayor of Las Vegas, 2004

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