The year of 2020 has been an endless roller coaster of keeping up with cycles of information. One topic that has a lot of consumers watching the news feeds eagerly is the current state of the housing market, and as Realtors, we are watching it as well, not just for our use, but to best serve our clients.
Being informed gives you a competitive edge in any housing market. Keep in mind that some national market trends do not indicate what is happening in your local area. As reported earlier this month, our market sales are down 22 percent compared to sales last year in the Greater Nashville region, but let’s take a look behind the scenes data of the rest of the story.
Recently, Greater Nashville Realtors reported there were 3,267 home closings for the month of May. We are all still dealing with some of the after-effects of the instability of the job market during the second quarter due to COVID-19. Monthly metrics indicate that the mortgage industry is seeing more purchase loans and less mortgage deferment month over month. Another key point to remember is the Greater Nashville area is still out producing other large metro areas where some housing markets stalled.
Our local consumers are still buying and selling homes, which is evident with the over 4,000 pending sales at the end of May. While we are waiting for more sellers to return to the market now that the economy is opening up in some areas, on the national level, there is an uptick in home improvement projects, according to the National Association of Realtors. This uptick leads us to believe that more sellers will return to the market with an updated home.
There were 4,085 sales pending at the end of May, compared to 3,940 pending sales at this time last year. The average number of days on the market for a single-family home was 31 days. Inventory at the end of May was 10,001 down from 11,576 in May 2019. Lower inventory is typically great for sellers as the lack of supply tends to drive up price and interest in consumers. At the same time, buyers may need to prepare themselves for multiple offer situations in some areas due to the lack of inventory.
Even though it appears complicated and can be frustrating, multiple offers are not something to fear. Working with a Realtor is the best option for consumers to navigate our ever-changing market. More than an app, Realtors are not only aware of current market trends, their guidance during this time is invaluable.
Kristy Hairston is president of Greater Nashville Realtors. A Realtor is a member of the National Association of Realtors who subscribes to its strict code of ethics. Contact Kristy at 615-254-7516 or email@example.com.
The content above is featured each Sunday in the RealDeal Column of The Tennessean, provided by Greater Nashville REALTORS®.