Montgomery County (Clarksville, TN) saw a strong rebound in residential sales of 28.7% over 2008 with 3,567 homes sold. New Construction lagged slightly with an increase of 26.2% year over year for 990 sales.
The average home value for the year was $150,801; up 1.3% over last year.
Higher priced homes did well with a record high of 231 closings for homes in the $250,000 + price range.
For 2010, sales in this area could remain relatively flat compared to 2009. There will be a small surge in May, and June as buyers work to cash in on the extended homebuyers tax credit. This includes trade-up buyers this year that may qualify for the $6,500 tax credit. The tax credit accelerates buying so we will probably see a comparatively weak July. A beneficiary of this last November's deadline were homebuilders as new construction sales peaked.
More troops are deploying which increases listing inventory but slows homebuyers. Increased inventory puts downward pressure on prices.
As credit tightened up we saw an increase in FHA loans. However, it appears that FHA may tighten their criteria also.
There will be a small lift from people moving into the area to service HSC construction. However, many will enter the market as renters. This is good as quite a few sellers have not seen enough appreciation to sell so they will rent their homes instead.
Interest rates are expected to creep higher in 2010 which will have an impact.
Demand will remain strong enough that an attractive home that is priced appropriately will sell in a reasonable time frame. While historic home values are a standard for determining a homes price, sellers will also have to look at how they are priced compared to their competition.
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