Huge Deal on Foreclosed House in Brentwood

forclosed houses in brentwood

This house in Brentwood was forclosed upon last month and is located in the best school system in Williamson County. The house itself is a 4 bed, 3.5 bath, 3 car 4,644 square foot contemporary home with hardwood floors…read the full Brentwood foreclosure story.

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Home Prices Slide in Nashville Area

Written by Chas Sisk, December’s median is lowest since 2004, The Tennessean:

Home prices dropped sharply in December – back to levels last seen before the real estate boom – as the Nashville housing market wrapped up its weakest year in a decade.

The median price of a single-family home sold last month dropped 13% compared with the same month a year ago, and the price of a condo unit fell even more, 21%, in the latest sign that homeowners may be more willing to sell at reduced prices.

The single-family median of $163,750 was the lowest for the month since December 2004, when the median was $153,000, according to data released Thursday by the Greater Nashville Association of Realtors. The condo median of $134,062 also was the lowest for the month since 2004.

The declines are a sharp reversal from a year earlier, when homeowners appeared to be holding out for their asking prices despite fewer buyers.

Since then, sales have slumped an additional 29%. The 24,246 closings recorded last year were the fewest since 1997 in the nine-county region tracked by the GNAR.

December sales were down a bit more. There were 1,422 closings in the month, a drop of 33% from a year ago. “It’s consistent with what’s been going on,” said Mike Nichols, GNAR’s president.

The declines in home prices essentially reversed the increases that Middle Tennessee had experienced over a three-year run that began in early 2005. From December 2004 to December 2007, the median price of a home rose nearly $35,000. That represented an increase of more than 22%.

But since this summer, sellers began to respond to the slower market with price cuts, and the median price settled lower back to a pre-boom level.

“If you bought in 2004, 2005, you’re going to be fine,” said Richard Exton, principal appraiser with the local firm Manier & Exton. “If you bought in 2006, you may not get out what you have in it.”

We here at Remarkable Homes do not agree with Mr. Exton’s generalization as certain areas of Nashville have held values much better than others.

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Mortgage Rates Drop, Again

national mortgages

Freddie Mac reports that the (average national) 30-year fixed mortgage rate dropped to 6.14% during the week ended Nov. 13 from 6.20% the prior week, marking the second consecutive weekly decline. The 15-year fixed mortgage rate fell to 5.81% from 5.88%, while the five-year adjustable mortgage rate slipped to 5.98% from 6.19%. However, the one-year ARM climbed to 5.33% from 5.25%.

Remarkable Homes predicts that this rate drop will do little or anything to stimulate the real estate market. We believe that rates need to drop below 5.0% before reluctant buyers will openly wade back into this saturated market en mass.

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30-Year Rates are Lowest Since 2005!

It appears that Christmas has come a month late! Long-term mortgage rates remain in a downward pattern, registering the third week in a row of declining interest. According to Freddie Mac’s numbers, average interest on 30-year fixed loans settled the week at 5.69% – the lowest level since July 2005.

Rates for 15-year fixed mortgages slipped to 5.21% from 5.43% a week ago; while the five-year adjustable-rate average retreated to 5.4% from 5.63%, and interest on one-year ARMs dropped to 5.26% from 5.37%. Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces – in which case they expect rates to decline further. However, today’s Asian and European black Monday points to the fact that rates will continue to dramatically drop.

Trust the Remarkable Homes Team to give you up to the date mortgage and pricing info for Nashville.

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Remarkable Homes Team Now Has Corporate Housing

The Remarkable Homes Team is proud to release our new Nashville Corporate Housing program that features brand new condos in urban core of Nashville. In 2008, we will release 8 condos in the Encore, 6 condos in the Icon, 4 condos in the Viridian, 4 flats in District Lofts, and 4 townhomes in Madison Square for corporate lease. In 2009, we will release 10 condos in the Rhythm and 5 townhomes in West End Station. All units will be brand new construction and fully furnished by Cort furniture, the industry leader in Nashville.

Pre-leasing will being in January 2008, for more information on floor plans and rates, please contact Grant Hammond at 615-945-7123 or via email Grant@RemarkableHomes.com

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The Media Vs. The Real Estate Market

With all of the doom and gloom on the nightly news, this question has to be asked: Is the news media creating an artificially bad real estate market? Is the news media at least responsible for making a bad situation worse? I believe that the answer has to be a resounding yes. Let me start by clarifying, the real estate market in Nashville is still appreciating and homes are not languishing on the market for years at a time. The story in Nashville is quite the opposite of most of the stories you hear across the United States, but our market has slowed more than what the conditions warrant. For example, our unemployment rate is less than 5% and has not risen in more than 28 months whereas the national unemployment rate is beginning to climb. Our average household income index has also risen faster than area homes prices.

It would be rather unrealistic to gloat that all of Nashville’s indicators are making a positive move, there have been a few traditionally bad signs for the market. The foreclosure rates and numbers are up over last year, but I could make the argument that the people who are losing their homes were overextended to begin with and would have eventually defaulted. It may actually be healthy to trim the uncredited “fat” from the Nashville market and allow currently qualified buyers acquire those properties. Obviously, the media simply talking about a bad national real estate market will not cause foreclosure rates to rise, but the doom and gloom will affect qualified buyers and their willingness to jump into an ownership position.

Perhaps the best economic indicator for Nashville is that rental rates have risen across the board. Single family home rentals, downtown condo rentals, suburban apartment rentals, Germantown townhouses, you name it, they are up on average 8% over last year. What does this mean? It means that there are plenty of people in Nashville who can afford and want to live in Nashville and that housing demand is still high. It also probably means that many people who are qualified and can afford to buy a home are simply choosing not to do so. I would make the argument that the national media has a lot to do with that decision.

Another great indicator for the Nashville market is that the commercial real estate market is one of the strongest in the United States. At the writing of this post most national publications rank Nashville in the top 5. In fact, the Hendersonville commercial real estate and Cool Springs commercial real estate markets are two of the strongest sub-markets in the history of middle Tennessee.

cool springs area of Tennessee

Of course there are many, many other factors that contribute to the overall market’s health, but consider these following accolades: Franklin was the 2006 “Best small town in America”, Smyrna is “one of the best places to retire in America in 2007”, Nashville is “the second best major city to relocate your business in 2007”, and the list goes on and on. You can also count on the Nashville Remarkable Homes Team to bring you the most up to date information.

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