new3We have all heard that June and July were very busy months in Nashville for selling and buying real estate. According to the Greater Nashville Association of Realtors (GNAR), there was a 22.4% increase this July over July 2012. You may be hearing that the market has slowed a bit and that might be true but we will see how the August numbers come in.
It is true mortgage interest rates have climbed, although still very attractive. The Federal Reserve continues tapering down its economic stimulus and it is driving mortgage rates higher this past week. The average rate on a 30 year mortgage reached its highest level in two years. A 30 year fixed rate mortgage averaged 4.58% in the week ending August 22, up from 4.40% the previous week. A 15 year fixed averaged 3.60%, up from 3.44%.
The Mortgage Bankers Association said applications to refinance an existing mortgage have fallen to the lowest level in two years.
What does this mean for buyers and sellers in Nashville and surrounding areas? GNAR President Price Lechleiter says the 22 percent increase in home sales in July is “very good news.” He says, “The fact that it is a continuation of the upward trend of the last 23 months is convincing evidence that this region is experiencing sustainable growth in the real estate market. The continuation of excellent visibility and positive economic news for Greater Nashville is attracting more people here, and seems to be building confidence in those already here, so there is more willingness to commit to the purchase of a home.”
It is true that inventory is low in many parts of Nashville and surrounding areas. Realtors are contacting past clients to see if they would like to sell and so on to find homes for immediate buyers. This adds an element of competition, good for sellers, not so good for buyers. The bottom line is that if you are considering selling your home, this could be a perfect time to do so. So if you would like to have a conversation to see if the time might be right for your personal goals, give us a call today. We can help you look over the information and make a decision about how to move forward, or not.