Posted in Nashville Market | Posted on 09-01-2015 | Written by Metrostudy News
SEPTEMBER 2015 – Metrostudy’s 2Q15 field survey found that the Nashville MSA experienced 6,645 residential construction starts over the past 12 months ending in June 2015, up 8% year over year from 2Q14 levels. This marks a new record high for construction starts for the region since the Great Rescission of 2009. Annual Closings as of 2Q 2015 came in at 6,095 new homes sold during the past 12 months, up 10% YoY from 2Q14.
Although builders have ramped up their construction activity, housing inventory remains low. “Perhaps the most important metric used to measure the health of housing inventory levels is the Finished but Vacant housing inventory months of supply (FV MOS),” said Eugene James, Director of Metrostudy’s Nashville region. “The region’s finished housing supply declined by another 14% year over year to 686 units and the FV months supply is at a record low of 1.4 months. Equilibrium had been about 2 to 2.5 months of finished housing supply thus an under-supply of finished homes exists.
Metrostudy analysis of the resale market shows 31,504 single family detached used and REO properties sold over the 12 months ending in 2Q15, 5% more than one year ago. 10% of these closings were REO sales (one year ago it was 14%) thus distressed sales are far from being a major issue in the region. The 2Q15 median sales price was $198,000 which is 9% above the year over year median sale price of $181,000. June single-family listings (inventory) moved downward by 13% YoY to 9,179 but rose 1% above last months inventory. The resale months’ supply is below normal levels at about 3 months. Normal levels would be closer to 6 months “thus an undersupply of resale homes are available for purchase as well.
“Strong sales and depressed inventory levels of both new and resale product will continue to push prices higher,” said James. “However, home prices have already climbed to an all-time record high in the region at a very rapid pace. The same pace would be unhealthy and unsustainable so we expect home price increases to slow.”
For information contact:
Eugene James @ 404.510.1080
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
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