With all of the National news still painting a dim picture, it is good to see hard local numbers that prove Nashville is skipping across the bottom of the market. Serious real estate investors should take note. This article by Jenny Burns appeared in The Nashville Business Journal on June 27, 2008:
The number of homes finished but not occupied has also crested. In February, it was at a record level of 4,353. This month, the number has dropped to 3,990.
“This market is very, very close to the bottom. Almost 70% to 80% of indicators are already at the bottom or near the bottom,” says Edsel Charles, president of MarketGraphics, which tracks the new-home market in Nashville and 21 other states.
By 2009, 15% of theNashville market will see some shortages, he says, and by 2010, about 40% to 45% will see shortages.
“By 2011, we have a problem on our hands with the availability of lots, “ he says.
The economic environment makes it difficult to buy and hold land though and Charles says about one-fourth of the builders are really struggling with the ability to borrow money to develop land.