Reports from The Greater Nashville Association of Realtors (GNAR) tell us there was just over an 18% increase year-over-year for closings in December, based on 2011 numbers in comparison to 2010. Of nearly 5100 closings during the fourth quarter of last year, nearly 1800 occurred during the historically slow holiday month. Overall, 2011 finished nearly 2% above the total number of closings in 2010; though that annual number is modest, the increasing trend at the end of the year is encouraging for the Nashville real estate market. In fact, those substantial increases for December were the sixth consecutive month of increases in home sales in the Greater Nashville area, and the current pipeline of pending sales is trending up. 

GNAR President Kendra Cooke pointed to December’s significant increase when discussing why optimism abounds among Music City real estate professionals. Additionally, 2011 had that modest recovery with no special governmental programs, like tax-credits for purchasing a home. Another boon for sellers is the fact that local rental rates continue to go up. With Nashville apartments driving up, families and individuals could swing their attention into the buying market.

Other encouraging signs were that median prices are holding steady, having just a small decrease from the previous year. The number of homes on the market has decreased quite substantially, and the average time on the market is 94 days. Even though there has been a slight lowering in prices, the inventory levels are back to those last seen in 2007. Another positive note is that recent listing prices are increasing. 

For buyers, the good news is that there remains a lot to choose from, and the homes on the market seem well maintained. People who want to sell know that their houses have to be in tip-top shape to sell quickly, and this translates into good values for buyers. Additionally, real estate in the Greater Nashville area has always been bargain priced when compared to other cities of a similar size. Many homes in the area have been built in the last 30 years or had full renovations to make them modern and energy efficient.

About two thirds of the homes in the region are full electric, the balance of them use gas for room units, gas fireplaces, or central furnaces. Basements are seldom found in homes in this region; Middle Tennessee is limestone bedrock with a high water table that makes it too difficult to build a basement in most cases. Exceptions are “daylight” basements built into the side of a hill so that they are partially exposed. 

Nashville is a great place to live; it is a growing and cosmopolitan city but still has a small town feel. The cost of living is relatively low for the size of the city and the amenities it provides, and the school systems have a good reputation. Employment opportunities in the area are on the upswing, and the unemployment rates have been dropping as well.