Terrazzo, Rhythm and Encore Condo Closings 2010

terrazzo rhythm encore closings 2010

This Nashville tax record analysis for 2010 condo sales was assembled to satisfy a large developer’s due diligence in the Nashville condo market. Only closings from the Terrazzo in the Gulch, the Rhythm at Music Row and the Encore in SoBro were considered.

terrazzo rhythm encore closings 2010

If you are a condo/multi-family developer, distressed asset fund, investor or bank who would like a custom Nashville condo report, do not hesitate to contact me.

Low Life, Blood Sucking, Vulture Realtors Video

low life blood sucking realtors

If we cannot laugh at ourselves, then who can we laugh with? Seriously, this video portraying a Realtor cold calling on a distressed home seller is genius. It captures the internal argument that resides within most sellers who are having difficulty staying afloat while waiting for the other shoe to drop. Sadly, this is a conversation many homeowners are afraid to have with their Realtors. Many allow their mortgage holder to progress too far down the pre-foreclosure road prior to having this “come to Jesus meeting”, as we say in the South.

Realtors have a Point

Despite this blood sucking vampire Realtor video saying it in a humorous way, there is very import advice given: do not count on a loan modification to be your saving grace. In way too many cases, loan modifications fall through in the eleventh hour for a multitude of logical and wholly illogical reasons. I’ve heard them all, but honestly, there is very little incentive for a bank to modify your mortgage when in many ways, it is easier, cleaner and sometimes beneficial to simply foreclose. The debt is shifted to an entirely different balance sheet, the bank’s ratio of overdue loans is lowered and here’s the big one: your mortgage (or note) is worthless paper that cannot currently be resold in the aftermarket, your home however, is an asset that is readily marketable to an established set of buyers. Homes sell, bad paper does not.

Many inevitably ask, why don’t we just change or even eliminate our mortgage banking system? Credit is an integral part of any capital market. There is really not way to eliminate it and expect an economy to sustain itself, let alone grow. That being said, there needs to be a better loan mod program available to homeowners. Simply eliminating homeowners is not making it better for anyone.

Distress Does Not Guarantee Foreclosure

If you are in a situation that is beginning to feel a little dire, don’t ignore it. I know that this is not a pleasant time in one’s life. Shoot me an email or give me a call. I’ll do my best to point you in the right direction sans judgment.

Brentwood Housing Inventory – August 2010

brentwood home kitchen

brentwood home kitchenWhile having 532 single family homes for sale in Brentwood may seem like a rather large unsold inventory, that number only represents 6.7% of the total homes in Brentwood. According to the 2008 estimated census, there are 7,934 single family homes in Brentwood. However, looking at the statistics below, the housing segment that does appear to be struggling in Brentwood is the over $1 million mansion market.

  Homes under $500,000 Homes $500,000 – $1 mil Homes $1 million +
Total For Sale 162 282 88
# Distressed 10 15 5
Average List Price $408,159 $685,286 $1,604,408
Median List Price $419,900 $659,950 $1,399,900
Days on Market 73 100 151

 

Contract and Closing Activity

It appears as if both Brentwood housing segments under $1 million are experiencing better than expected activity, but the over $1 million properties are sitting on the market longer than usual and selling for much less than original asking price.

  Homes under $500,000 Homes $500,000 – $1 mil Homes $1 million +
Have Offers 20 18 4
Currently Pending 9 35 4
Sold last 3 Months 94 113 12
Avg Sold Price $383,703 $642,229 $1,143,164
% Less Than List 5.99% 6.28% 28.74%

 

Brentwood Housing Market Conclusions

With only 5.17 months of inventory currently on the market, the under $500,000 housing market is the healthiest in Brentwood, TN. The $500,000 – $1 million housing segment follows with 7.48 months of inventory on the market. Finally, the over $1 million housing market has quite a bit of absorbing to do with almost 2 years worth of inventory currently for sale.

Also very troubling for multi-million dollar mansions is the fact that sellers are having to take rather large discounts in order to sell their houses. According to the statistics, the average price for homes listed in this market segment is $1,604,408 while the average sale is $1,1143,164. This 28.74% differential is telling us that either only the lower priced homes in this segment are selling or that sellers are having to reduce their expectations significantly.

A little worrisome for both mansions and more reasonably priced homes in Brentwood is that 5.63% of all home owners are distressed; meaning, listed as a foreclosure or short sale in the MLS. This number is up almost 2 percentage points since the beginning of 2010.

Overall, the news is simply not that bad. Yes, homes are taking longer to sell than in years past and yes, they are selling for less. But, the Brentwood housing market remains one of the most active in Middle Tennessee as well as one of the most stable. Based upon this evidence, I would expect Brentwood to be within 22 months of returning to a completely unencumbered market.

An experienced agent can become the difference between successfully selling your home in 2010 or having to wait until 2013. Do not hestiate to contact me regarding any price range home in Brentwood.

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