The pending home sales in June increased from the previous month in all four major regions, according to the National Association of REALTORS’ Pending Home Sales Index (PHSI).
The PHSI in the South increased 4.7% to 111.6 but was 12.7% below June 2006. The 5% monthly gain is the largest since March 2004’s 6.1% increase.
“However, it is too early to say if home sales have already passed bottom,” said Lawrence Yun, NAR senior economist. “Still, major declines in home sales are likely to have occurred already, and further declines, if any, are likely to be modest given the accumulating pent-up demand.”
In such a transitional real estate market, it is very good to see such a large turn around. In retrospect, some of March’s decline in sales was due to sellers speculating on the market by placing homes on the real estate market at unrealistic prices. Local Realtors added to that decline by advising purchase clients to wait a few months for the market to cool.
However, downtown Nashville condos and lofts seem to be unaffected by this cyclical real estate market. The new construction market has more than doubled in the past 2 years and sees no end to the sales and price accession. This Realtor does caution you to be discerning in your choices though, only purchase units with great floor plans, views, and great prices.
If you are a real estate investor, you should be in contact with our agents who specialize in Nashville commercial property. We constantly look for unlisted retail store fronts, medical office buildings, high cap rate shopping centers, and vacant land.
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Home Sales for Nashville, TN – December 2008
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