With the last Cadence Bank owned condo placed under contract moved to pending earlier this week, the 105 unit Rhythm at Music Row condos have sold out. As you may recall, in a structured foreclosure on September 6th, Cadence Bank and Pinnacle Bank took possession of the 47 unsold condos in the development. Each bank listed their individual condos with local real estate brokers instead of selling them in bulk. Pinnacle bank listed their condos with Village Real Estate and Cadence Bank listed with Grant Hammond.
(final 7 condos under contract in the MLS)
You may also recall that I postulated that if these Rhythm condos were priced correctly, the 47 would sell out in less than 9 months. I took a lot of heat for that prediction as being aggressive and unrealistic. The fact is that we collectively sold Rhythm out in only 5 months providing further proof that the Nashville condo market has bottomed out and is recovering.
Future High-Rise Condo Prices in Nashville
The Nashville condo supply has been shrinking for 3 consecutive years with no new construction in sight. We are quickly reaching a point when demand will outpace supply leading to an inevitable spike in pricing. Buildings like the Rhythm, Terrazzo and Encore which have recently sold out of developer or bank owned inventory will experience a steady price recovery over the next 12 months that will accelerate in 2013-2015.
The 5th & Main condos in East Nashville have now contracted 85 of their 129, all within the past 6 months, leading to the conclusion that this project will be substantially sold out by the summer. Once 5th & Main is sold out, there are no additional distressed condo projects. Let me repeat that: once 5th and Main sells out, there are NO more deals priced below the market. If you are a condo buyer who has been holding out for the bottom of the market, we are past that point, but there are still a few good deals remaining. Jump in soon or expect to pay a premium to live in downtown Nashville in the very near future.
♥ Grant Hammond has sold over 250 condos in Nashville since 2005. More impressively, he has never worked for a developer, all 250 sales were independent sales, making Grant the most active condo broker in Nashville. Put his unparalleled market knowledge, research and expertise to work for you.
Grant Hammond, Broker, ABR, SFR
Call or Text: 615-945-7123
Condos@GrantHammond.com
