I just got an e-mail from our local Realtor Association with comparative stats for Sumner County Sales 2006 vs. 2007. The interesting thing here is that the number of recent closes are down just a little --- but the inventory is up about 25% in October 2007. I'm looking at only one county in the Middle Tennessee/Nashville MSA, but in other discussions with my peers from other counties it's the the same story. So, it appears we have an excess of inventory with the same number of buyers. Yep, we have had quite a building boom in Sumner County Tennessee and now it's time for a "market correction".
What are you seeing out in your areas?
Builders are currently offering interesting incentives .... inclusion of fully equipped media rooms, furniture allowances, or EVEN price reductions! For the last few years you could set your watch by the regularity of 10-20% price increases imposed by builders at the first of each year --- business was so good there were even mid-year increases!
Next year's forecast? Construction related organizations say that the forecast for spring spring is more positive .... that the foreclosure gloom and doom is really concentrated in a few areas -- not in Tennessee certainly. The National Association of Realtors is a little more conservative (Link: Modest Recovery for Existing-Home Sales in 2008 as Credit Crunch Subsides NAR Press release 11/13/07) but still sees a better spring!
Do you agree?
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