Nashville new home construction is down but that could be good news for the real estate market
The Nashville area's building permits have fallen to the pre-boom levels of 2003, a sign that builders strongly restricted new home construction in 2007.
Analysts say that pull back is good for the real estate market since inventory levels have been on the rise and demand shrunk.
Tightening has also meant job cuts.
"The good news is that the building permits are off, because we are finding ourselves with some extra inventory in the marketplace," says Edsel Charles, president of Nashville-based MarketGraphics Research Group, which conducted the report. "We are seeing the market reaching for a bottom and anticipate that the market will start its recovery between August of 2008 and March 2009."
Building permits in the seven-county area for January through November were down 17 percent in 2007 - coming in at 11,389 compared to 13,851, according to MarketGraphics. In 2003 there were 11,421 permits pulled between January and November.
The change in market dynamics has caused Nashville builders to shave staff and reposition their businesses.
Nashville-based Greenvale Homes pulled 22 percent fewer permits in 2007 than in 2006, and its inventory was down almost 50 percent.
Greenvale's chief financial officer Shane McFarland says builders were smart in 2007 and slowed their construction to allow inventory to be absorbed. The slowdown caused his company to cut some staffing and its subcontractor base.
"Most companies have had to scale back on operating, whether its inside staff or outside staff. We could not be positioned to be building homes at an '06 level. Any prudent business has done that," McFarland says.
Middle Tennessee State University economist David Penn says he's sure the local building industry has seen cutbacks. So far, however, preliminary numbers show construction jobs locally have increased over last year, but Penn says when adjusted numbers come out, they may show a drop.
Construction jobs nationally have been falling, and Penn isn't sure if the pick-up in commercial building and road construction is enough to offset the residential losses in Nashville. Phil Pace, owner of The Conseco Group Inc. a construction service company that primarily does commercial building, says he's seen a lot more resumes from residential contractors looking for work.
Pace says he expects to see more competition in the commercial subcontractor market, which could mean their services may cost slightly less or "at best" stay flat. Pace says this looks to be a plus for his company, since the last couple years have seen prices rise for all trades.
Wilson County bucked the trend this year. It had a 13 percent increase in building permits to 1,208 from 1,068. Davidson County was the other county with an increase - 0.5 percent to 3,812 - from January through November, according to MarketGraphics.
The other five counties saw permits decline, including Williamson County with the largest drop of 37 percent.
Real estate agents in Mt. Juliet say Providence Marketplace, good schools and affordable prices have increased construction in Wilson County.
"We've got almost everything that people are looking for. People are coming farther east to buy. They can get so much more for their money," says Margaret Dixon, who sells homes for builders through Crye-Leike Realtors. She says her builders in Wilson County reacted to the market by slowing down. The result: She now has no spec homes left from one builder, one home left from another and two spec homes left from a third.
And with the median price for a home at $202,500, buyers can get a lot more for their money than Williamson County's $379,369 median price.
McFarland says he expects the housing market to be strong into 2008, but not as good as 2005 and 2006. His company, which primarily builds in Davidson and Rutherford counties, has moved into Wilson County because numbers showed it was a land of opportunity.
Celebration Homes principal partner Randall Smith says his sales in Wilson County helped his company see its best year since it started in 2001. The builder sells homes in three counties, but sales in Providence played a significant role in the company's success this year.
"We've seen steady demand for our housing in Providence where some of our other communities demand has been less. Some of that has been due to oversupply of housing," Smith says.
Nashville Business Journal - January 18, 2008
News, interests, info and tips about the Real Estate Market in Middle Tennessee. Our Focus is the Nashville area, both Williamson and Davidson County and the surrounding areas of Franklin, Brentwood, Spring Hill, Thompson's Station, Hendersonville, Leipers Fork, Belle Meade, Nolensville, the Cool Springs area and the Vanderbilt area
January 20, 2008
Franklin Special School District honors it's board
Proclamation honors school board officials
Mayor John Schroer has declared Jan. 20-26 school board appreciation week. Schroer delivered the proclamation personally to the Franklin Special School District Board of Education at its meeting.
The proclamation, given annually to the school board, honors board members for their hours of public service to the community.
A former FSSD board member for 14 years, Schroer told board members that he had a great love for the school system he served.
The board celebrates the week by visiting schools and attending various student celebrations.
In honor of the board members, the school system also donated a book to each school library, A Guide to the Natchez Trace.
"This is a family like no other," Schroer said.
Disciplinary board members namedThe board unanimously approved the appointment of three members to serve on the student disciplinary hearing authority. The members are: Jerre Ann Mathis, Tricia Green and Roberta Hill.
Board policy dictates that the school district must have a disciplinary board in place. Director of Schools David Snowden said that it is rare that the district needs the help of the board, but nevertheless the institution is necessary.
"Thankfully, we don't have a lot of situations," Snowden told the board members. "But we need one anyway."
Board to vote on firm for renovationsFormer FSSD board member Mayor John Schroer advised his former colleagues to interview two out of four construction management firms before deciding on which would oversee renovation projects at Freedom Intermediate and Moore Elementary schools.
The school board requested proposals for the management job and received four bids, with the lowest a tie between two companies at $588,000.
The two companies are Doster Construction and Medical Construction Group. Schroer said both firms came highly recommended but that the board should hold individual interviews.
The school board will interview and vote on the competing firms at a specially called meeting Saturday 4 p.m. at The Lodge at Deer Run, 3803 Perkins Road, Thompson's Station.
"They are your eyes and ears on the project," Schroer told board members. "Their pricing is fixed. It doesn't do them a lot of good to cut corners. Both of these companies are anxious to have the job."
The Williamson A.M - The Tennessean
Mayor John Schroer has declared Jan. 20-26 school board appreciation week. Schroer delivered the proclamation personally to the Franklin Special School District Board of Education at its meeting.
The proclamation, given annually to the school board, honors board members for their hours of public service to the community.
A former FSSD board member for 14 years, Schroer told board members that he had a great love for the school system he served.
The board celebrates the week by visiting schools and attending various student celebrations.
In honor of the board members, the school system also donated a book to each school library, A Guide to the Natchez Trace.
"This is a family like no other," Schroer said.
Disciplinary board members namedThe board unanimously approved the appointment of three members to serve on the student disciplinary hearing authority. The members are: Jerre Ann Mathis, Tricia Green and Roberta Hill.
Board policy dictates that the school district must have a disciplinary board in place. Director of Schools David Snowden said that it is rare that the district needs the help of the board, but nevertheless the institution is necessary.
"Thankfully, we don't have a lot of situations," Snowden told the board members. "But we need one anyway."
Board to vote on firm for renovationsFormer FSSD board member Mayor John Schroer advised his former colleagues to interview two out of four construction management firms before deciding on which would oversee renovation projects at Freedom Intermediate and Moore Elementary schools.
The school board requested proposals for the management job and received four bids, with the lowest a tie between two companies at $588,000.
The two companies are Doster Construction and Medical Construction Group. Schroer said both firms came highly recommended but that the board should hold individual interviews.
The school board will interview and vote on the competing firms at a specially called meeting Saturday 4 p.m. at The Lodge at Deer Run, 3803 Perkins Road, Thompson's Station.
"They are your eyes and ears on the project," Schroer told board members. "Their pricing is fixed. It doesn't do them a lot of good to cut corners. Both of these companies are anxious to have the job."
The Williamson A.M - The Tennessean
January 18, 2008
National Assoc. of Realtors Home Value Facts
NAR Campaign Relates Real Facts About Real Estate
WASHINGTON, January 14, 2008 -
Beginning today, the National Association of Realtors® is reaching out to consumers with the facts about homeownership and the value of real estate as a long-term investment. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long-term benefits of owning a home through a new advertising campaign that will provide current, relevant housing data to help them make informed decisions about buying a home.
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing-home sales series. A Federal Reserve study has shown that the average homeowner's net worth is 46 times the net worth of the average renter. Despite this and other research, some potential home buyers are being kept on the sidelines as they react to national media reports about the housing market.
“Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with a Realtor® in their local market to learn about conditions specific to the area. It’s also advisable to look beyond the immediate horizon – real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”
According to NAR’s most recent forecast, existing-home sales are likely to total 5.66 million in 2007, the fifth highest on record, rising to 5.70 million in 2008 and 5.91 million in 2009. Existing-home prices are likely to be down 1.9 percent to a median of $217,600 for all of 2007 which is good news for buyers; prices are expected to hold steady in 2008, and then rise 3.1 percent in 2009 to $224,400.
The campaign includes a new Web site, www.HousingMarketFacts.com, which provides more information about the benefits and value of owning a home, identifies current public policy issues of importance to consumers in the real estate transaction and allows visitors to link directly to www.REALTOR.com to find a Realtor®.
The ads are part of NAR’s Public Awareness Campaign. For more than a decade, the Public Awareness Campaign has helped millions of consumers realize the value of using a Realtor® to help them buy or sell real estate, and is now educating consumers about the value of housing as a long-term investment. In 2008, campaign ads will be broadcast nationwide from January through November and will air more than 10,000 times on national TV and radio outlets. Local and state Realtor® associations are encouraged to coordinate with the campaign in their markets with local radio, TV and print buys. To learn more about the national Public Awareness Campaign, visit www.realtor.org/awarenesscampaign.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
WASHINGTON, January 14, 2008 -
Beginning today, the National Association of Realtors® is reaching out to consumers with the facts about homeownership and the value of real estate as a long-term investment. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long-term benefits of owning a home through a new advertising campaign that will provide current, relevant housing data to help them make informed decisions about buying a home.
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing-home sales series. A Federal Reserve study has shown that the average homeowner's net worth is 46 times the net worth of the average renter. Despite this and other research, some potential home buyers are being kept on the sidelines as they react to national media reports about the housing market.
“Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with a Realtor® in their local market to learn about conditions specific to the area. It’s also advisable to look beyond the immediate horizon – real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”
According to NAR’s most recent forecast, existing-home sales are likely to total 5.66 million in 2007, the fifth highest on record, rising to 5.70 million in 2008 and 5.91 million in 2009. Existing-home prices are likely to be down 1.9 percent to a median of $217,600 for all of 2007 which is good news for buyers; prices are expected to hold steady in 2008, and then rise 3.1 percent in 2009 to $224,400.
The campaign includes a new Web site, www.HousingMarketFacts.com, which provides more information about the benefits and value of owning a home, identifies current public policy issues of importance to consumers in the real estate transaction and allows visitors to link directly to www.REALTOR.com to find a Realtor®.
The ads are part of NAR’s Public Awareness Campaign. For more than a decade, the Public Awareness Campaign has helped millions of consumers realize the value of using a Realtor® to help them buy or sell real estate, and is now educating consumers about the value of housing as a long-term investment. In 2008, campaign ads will be broadcast nationwide from January through November and will air more than 10,000 times on national TV and radio outlets. Local and state Realtor® associations are encouraged to coordinate with the campaign in their markets with local radio, TV and print buys. To learn more about the national Public Awareness Campaign, visit www.realtor.org/awarenesscampaign.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
January 7, 2008
Williamson County December 2007 Home Sales
Williamson County Association of Realtors® Announces December 2007 Home Sales
January 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of December 2007. There were 305 residential and condominium closings reported for the month of December, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to December of 2006, the single family residential closings decreased 30 percent and the median price decreased by 2 percent. Compared to 2005, the median home prices have increased by 20 percent. Condominiums closings have increased by 2 percent and the median price increased by 5 percent. Compared to 2005, the median price for condominiums has increased 37 percent. The average days on the market (DOM) for residential homes have increased by 21 days and condominiums have increased by 2 days. Days on the market have been consistent since the onset of 2007, with the days ranging from 58 - 72 days. Median prices have remained consistent since January 2007, ranging from $365,000 to $391,200. The median is a typical market price where half of the homes sold for more and half sold for less.
As expected the real estate market in Williamson County remained consistent with the other months of the fourth quarter producing approximately 250 residential closings each month. Real estate continues to be a strong investment in our area despite the seasonal slowdown that is consistent with the fourth quarter of every year. Nationally 2007 is the fifth best year for real estate since the National Association of REALTORS® began keeping records; more than 100 years ago. We expect 2008 to remain consistent with 2007 with an increased volume of transactions towards the middle of the year." said Kathie Moore, 2008 President of the Williamson County Association of REALTORS®.
As expected the real estate market in Williamson County remained consistent with the other months of the fourth quarter producing approximately 250 residential closings each month. Real estate continues to be a strong investment in our area despite the seasonal slowdown that is consistent with the fourth quarter of every year. Nationally 2007 is the fifth best year for real estate since the National Association of REALTORS® began keeping records; more than 100 years ago. We expect 2008 to remain consistent with 2007 with an increased volume of transactions towards the middle of the year." said Kathie Moore, 2008 President of the Williamson County Association of REALTORS®.
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