Home prices in the Nashville area ended October up 7.7 percent from a year earlier, according to research firm CoreLogic. That number was up from 6.9 percent the month before and broke a steady downward trend from the double digits we saw early this year. Taking out distressed sales, year-over-year prices increased by 6.2 percent in October, up from 5.3 percent in September.
SEE ALSO: Another recent trend-bucking positive housing market indicator, Freddie Mac's MiMi Index released last week.
The research team at housing finance giant Freddie Mac says Nashville's housing market showed renewed strength at the beginning of the fall and was among the top 10 in the country. (Check out the company's national release here.) Even though Middle Tennessee still officially ranks as relatively weak, it is outpacing the country when it comes to purchase applications, payment-to-income ratios and the number of borrowers current on their mortgages.
More good news for local homeowners and bankers: The latest foreclosure and delinquent loan data from research firm CoreLogic show that 0.54 percent of local homes were in foreclosure in September, which is up slightly from the August figure and right in line with the average of the past five months. But the share of loans late 90 days or more dipped to 2.96 percent of the total, the first time since before the recession that number has dropped below 3 percent.
By now, the trend is clear: Nashville-area housing prices are marching toward equilibrium and those expecting big gains from here on out are likely to be sorely disappointed. Research firm CoreLogic says September's local prices, including distressed sales, were up 6.9 percent from the mark of a year earlier. Take out those distressed sales and we were up 5.3 percent year over year. Those numbers are down from 7.3 percent and 6.0 percent, respectively, in August.
The Middle Tennessee housing market could be healthier, according to Freddie Mac's Multi-Indicator Market Index, but it's not regressing as steadily as it had earlier this summer. And there's the potential for a year-end strengthening: The agency's chief economist notes Nashville is among some mid-sized showing a rise in the number of home purchase applications.
So it appears that Middle Tennessee's residential real estate sector has purged from its system almost all the bad loans and foreclosures it could. New data from CoreLogic shows that the region's home loan delinquency and foreclosures rates — which were still dropping steadily this spring — have bottomed out. They're not moving back up yet — and given the steady growth of the region, that may not happen soon — but the positive momentum has clearly petered out.
Nashville-area homeowners took out almost 8,400 home equity lines of credit in the fiscal year ended June 30, according to research firm RealtyTrac. That was up 16 percent from the year before, a growth number that trails the national average by about four points. But that may change in the coming year: HELOCs accounted for 21.5 percent of all Middle Tennessee loan originations in the first half of 2014, six points more than the U.S. average. Here's RealtyTrac's release highlighting national stats, including one that shows we're still far, far from the froth of 2006.
POSTDATA: WARRANTY DEEDS
- TIPTON, JOHN H JR; TIPTON, FRANCES ADAMS
- HARRIS, JUDY C
- BIRDWELL, MARIAN ESTELLE TRUSTEE; BIRDWELL CHARLES EDWARD AND MARIAN ESTELLE BIRDWELL REVOCABLE TRUST; BIRDWELL MARIAN ESTELLE REVOCABLE TRUST; CHARLES EDWARD BIRDWELL AND MARIAN ESTELLE BIRDWELL REVOCABLE TRUST; MARIAN ESTELLE BIRDWELL REVOCABLE TRUST
- SIMPKINS, W L JR; SIMPKINS, NANCY H