As expected, Q2 2010 condo prices and closing volume increased rather significantly over the first quarter. This fact can be directly attributed to the expiration of the second Federal first-time homebuyer’s tax credit. Nearly all new construction high-rises benefited during this period, but none as much as the Icon in the Gulch which nearly doubled its Q1 sales volume. Both the Adelicia and Terrazzo continue to impress with sustained increases in total price and price per square foot.
Listed are the vast majority of the condo closings in the following areas of Nashville: 1) Downtown CBD, 2) Sobro region, 3) Gulch, 4) Midtown, 5) West End and 6) East bank. I have only considered condo projects that were completed after 2006 and contain more than 60 total units. I have excluded sold out condo projects west of midtown. Those excluded include: Bristol on Broadway, Bristol West End, The Enclave, The Glen and all projects in the West End Circle area with the exception of The West End high-rise.
Nashville Condo Prices
Clearly, condo prices in Nashville will become much softer moving forward. With the lack of any new tax incentives, I expect both closing volume and especially, condo prices to fall in the third and fourth quarters.