Nashville Economy (days on market, transplants, sales)

[snowflake73]

How do you all think the Nashville economy is doing?

[alleycat]

Overall, very well. There may be certain segments that are a little off due to the sluggishness in the national economy, but so far the impart has been minimal here.

[bnewman]

Nashville is fortunate to have a very diverse economic make up...we have a variety of industries (medical, college, auto, etc.) that keep us well insulated from the impact of the National economy. Our housing market is better than most, with prices still appreciating or at least remaining stable. We have a lot of transplants from other parts of the country, so it helps stimulate our local economy on a consistent basis.

[Wild Style]

bnewman

with all those "reduced price" signs I see all over the place in Nashville I can't see how the home prices are stable. That or there is a disconnect between buyers and sellers, which means prices will fall later rather than sooner.

[bnewman]

The numbers don't lie, so check out this press release http://gnar.org/mlsrelease.htm

As for all the "Reduced Price" signs around...it's taking sellers a long time to realize that we're not in the same market now as we were this time last year. The homes that are on the market and have reduced their prices are those that were OVERPRICED for the current market to begin with. Trying to get a 10% gain over last year when there's only been a 2-4% gain is unrealistic, and sellers are having to adjust to the reality of today's market. The sellers who price their homes according the the current market are selling, and they're selling within a timely manner and very close to their asking price.

Just another argument to support the fact that real estate is LOCAL...and even within Nashville, the markets are different from neighborhood to neighborhood.

[gbone]

Originally Posted by Wild Style

bnewman

with all those "reduced price" signs I see all over the place in Nashville I can't see how the home prices are stable. That or there is a disconnect between buyers and sellers, which means prices will fall later rather than sooner.

Wild Style, there is a disconnect between buyers and sellers. The GNAR stats are very misleading because they don't tell the whole story. Transactions are down over 20%. Listing expirations and withdrawals are up substantially over year to year comparisons. Days on market are up substantially, especially when you factor out games played with the MLS. You also can't trust the sales price to list price because, in many instances, the list price has been dropped substantially and many times.
With all of this said, the Nashville market is still better than most of the country due to its economic diversity and jobs.

[Wild Style]

Originally Posted by gbone

Wild Style, there is a disconnect between buyers and sellers. The GNAR stats are very misleading because they don't tell the whole story. Transactions are down over 20%. Listing expirations and withdrawals are up substantially over year to year comparisons. Days on market are up substantially, especially when you factor out games played with the MLS. You also can't trust the sales price to list price because, in many instances, the list price has been dropped substantially and many times.
With all of this said, the Nashville market is still better than most of the country due to its economic diversity and jobs.

I think its not as bad as other places because prices have not appreciated as much as say a south florida, but given the local economy those prices are pretty ridiculous. I mean exotic loans are pretty much gone now. So that means people have to have 20% down and price is 2.5 to 3 times annual income.

Where our house is, the prices have gone up about 25,000 to 30,000 and homes are just sitting there. One they have not been able to sell in a year (the developer hasn't been able to unload it). The market will correct itself though, it always does.


I heard a lot of those high end condos downtown aren't selling either, and I heard a few projects were put on hold. You heard anything about this?

[bobtn]

Quite well. Diversification and a low tax structure conducive to growth will help us, as always, outperform the nation overall.

[kailynleto]

Nashville's economy, and that of Middle Tennessee as a whole, tends to hold up better than the rest of the country during downturns and recessions, at least from what little I've researched (and remembered) from the recessions of 2001 and 1990. Below I'll post a link to a story from The Tennessean by one local guy about our economy.

Nashville is good place to weather a recession | www.tennessean.com | The Tennessean

[Wild Style]

kaily

great link, thx for that!