Monday, August 9, 2010

Nashville area home sales fall 21 percent in July

Home sales fell for the first time in 10 months in July, as the tax credits expired and fewer first-time homebuyers bought homes, the Greater Nashville Association of Realtors reported today.
Home sales fell 21 percent in July to 1,745 closings, driven downward by lagging sales of single-family homes and condos in the region.

However, the median price of a home in the Nashville area stayed about $180,000 – the second straight month when prices climbed back to what they were two years ago. The median price of a single-family home in July was $181,000, a 5.8 percent increase from last July, the association said. The median price of a condo was $149,900, also a nearly 6 percent increase from last year.

“The tax credit helped drive nine consecutive months of increased home sales,” said GNAR president Lucy Smith in a statement. “Until the overall economy strengthens and employment numbers increase, it is appropriate to expect some softness in the real estate market both nationally and regionally.”

Inventory of single-family homes climbed by 1.7 percent to 15,172 homes on the market in July.

Real Estate Outlook: 10 Percent Decline in Home StartsHome sales take unexpected dip