The good news is that the fundamentals that have supported growth in our area are still positive. According to the article in the Tennessean, census figures show population growth continues in the midstate area. And the latest report from the Bureau of Labor Statistics shows we are still adding jobs as well. HUD puts median income at $63,200 for the area which means that half of midstate residents have enough income to qualify for a mortgage of at least $190,000 which is well above the median home price of $183,615. Additionally, the PMI Group which analyzes risk for mortgage insurors estimates that there is only a 1.3% risk that home prices in Nashville will be lower two years from now.

What does all this mean to you? If you are a seller in today’s market, you’ll need to be sure your presentation and pricing are on target. If you are a buyer, opportunity abounds while risk remains minimal.

Surrounding counties are showing similar decreases in activity. Sales in Williamson County are down 33% from last June with average sale prices declining 5%. Wilson County shows the biggest drop in closings, down 45% but average prices declined only 2%. Rutherford County saw a 36% decline in closed sales while the average sale price slipped 5%.

Average sales prices in areas 1,3,7 and 8 were down slightly while areas 2,4,5 and 6 saw modest gains over last March’s numbers. Area 6 which represents East Nashville showed a 7% increase in average price over last March, but 33% fewer sales, which was the largest drop in number of closed sales for any area of the city.

Average days on market has dropped to 67 from February’s 72. 1702 new listings came to the market putting inventory about 20% above what it was last March.

All in all, Nashville’s real estate market still looks healthy for both buyers and sellers. Increased inventory offers more opportunities for buyers, and sellers can sell in their time frame if they price correctly.

Things are not quite as rosy in Williamson County. Franklin in particular is showing some definite price weakness. There were 111 single family homes sold in March which is about 30% below last year’s number. The average sale price dropped from $482,408 to $428,944. That’s an 11% reduction. The reason for the price decline is bulging inventory. The average number of daily listings was 2,428 during the past month which is 30 % above last year’s number. At current absorption rates, we have a 10 month supply of homes to be sold.

NBC followed the foreclosure story with a piece about the shortage of long haul truck drivers in our country. The trucking industry estimates they are currently 20,000 drivers short of their needs, and expect this number to grow in the coming year. Road drivers can make anywhere from $50,000 up to $100,000 per year but companies have trouble filling those positions because drivers essentially live in their trucks, and spend weeks at a time away from home.  You see where I’m going here? Talk about puppies and sunshine! You can ride around in your house and get paid for it too! Make good money, forget about your mortgage, and see the country all at the same time! Somebody call Bernake and tell him I’ve figured a way out of this mess!

Seriously folks, Realtor’s are handling the largest investment most people make in their lives. You’d think a little diligence and care would be appropriate here! IESpell is a wonderful (and free) add on to Internet Explorer. Check it out!

C’mon guys! You built too many houses! Are you asking the government to protect you from your own mistakes? And at who’s expense?

Use your PAC money to improve your business planning, and quit whining. The market will work it’s way through this mess, and that’s the way it should be.

Location is everything and a broad brush approach to statistics may not be in sync with what’s going on in your neighborhood. Let’s break the numbers down a little bit more and see at what’s happening in the most active areas of town.

The largest number of sales in Davidson County was in Area 1, with 132 closings of single family homes, at an average sale price of $183,132. This compares to 163 sales last January at an average sale price of $198,781. The change in average sale price is most influenced by fewer homes over $350,000 sold this January than last. If you look at homes of 1500 to 2000 square feet, the average sale price is up to $163,851 versus $153,753 last January.

Area 2 was the second most active with 102 sales of single family homes at an average price of $440,776. This compares to 115 sales averaging $451,548 last January. As in area 1, these numbers are influenced by the top end sales, and there were more sales of homes over $1,000,000 last January. The most significant stat is that more than 400 more homes were put on the market during January, increasing the average number of active listings per day to 953, which represents a 9 month supply at our current pace.

Not surprisingly, the average sale price increased in area 6,  which represents East Nashville. There continues to be significant renovation in this area by investors and homeowners. The number of homes sold was down about 25%, but the average price was up 5% to $143,676. Average sale prices were up in areas 7 and 8 as well. With median prices below $150,000 in these three areas, it would seem that the demand for affordable housing is still strong.

Perhaps the most dramatic change from last January occurred in Williamson County. Closings of single family homes dropped by more than 40%, while inventory rose 27%. Prices are relatively unchanged, but the weight of this much inventory is troublesome. At January’s sales pace, we have a 15 month supply on our hands.

Wilson County is a bright spot on the map largely due to the development at Providence. The number of closed sales there increased by 20% to 1140, and average prices rose 4.7% to $313,247.