Real estate research firm Zillow's latest report on the Middle Tennessee housing market includes plenty of good news, especially for Williamson County homeowners. The company's price index for the Nashville MSA, which estimates the median value of all homes in the area, climbed 3.4 percent in the year ended June 30. Leading the way among local cities is Thompson's Station, where the median value has shot up almost 12 percent in the past 12 months. Franklin and Brentwood come in second and third with gains of 9.3 percent and 7 percent, respectively.
Those looking for more big local price gains are likely to be disappointed, however. Zillow's researchers expect the median home value to rise just 0.3 percent. Among the region's cities, Thompson's Station is expected to gain 3 percent by mid-2014. Franklin is the only other area forecast to see prices rise more than 2 percent. Check out the full list here.
The continued tightness in for-sale inventories is pushing up home prices across the country, says research firm CoreLogic. In May, the average year-over-year price increase came in at more than 12 percent, with five states posting gains greater than 15 percent. Locally, too, the numbers keep climbing from where they were earlier this year.
In Nashville-Davidson--Murfreesboro--Franklin, home prices, including distressed sales, increased by 8.0 percent in May 2013 compared to May 2012. On a month-over-month basis, home prices, including distressed sales, increased by 2.2 percent in May 2013 compared to April 2013.
Excluding distressed sales, year-over-year prices increased by 10.0 percent in May 2013 compared to May 2012. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.9 percent in May 2013 compared to April 2013.
D.A. Davidson analyst Steven Chercover doesn’t see shares of Louisiana-Pacific recovering much of the more than 30 percent they have lost in the past three months. Noting that lower prices — they ran up steeply last year as construction demand grew before new capacity could come online — will hurt profits, he has trimmed his price target to $16 but reiterated his ‘neutral’ rating. At around 1:45 p.m., LP (Ticker: LPX) was off about 1 percent to $14.80.
Ann Hynes at Mizuho late last week pushed up to $50 from $48 her price target for shares of Community Health Systems. The move came before Tenet Healthcare announced it plans to buy Vanguard Health Systems and hedge fund Glenview Capital said it wants to replace the board at Health Management Associates. Regarding the latter, a number of market watchers expect CHS to be the prime bidder should HMA head to the auction block. Shares of CHS (Ticker: CYH) were down slightly to $46.52 in Wednesday afternoon trading.
After five months in a very tight range around 1.15 percent, the Nashville-area foreclosure rate fell to 1.06 percent in April, says research firm CoreLogic. Similarly, the 90-day delinquency rate among local mortgage borrowers dipped to 4.01 percent. It hasn't been below 4 percent since March of 2009.
Research firm CoreLogic says the Nashville-area housing market continues to heal if you're looking at it through the lens of seriously delinquent mortgages. In March, 4.2 percent of area home loans were delinquent, which is down 13 basis points from February and about 90 basis points less than a year earlier. All appears to be good there.
But the other metric CoreLogic tracks closely, the foreclosure rate, has stubbornly stayed around 1.15 percent since last fall. So, mortgage market watchers out there: Is that foreclosure rate our new "natural" number?
By now, you've likely noticed the Middle Tennessee housing market is going great guns, with sales volume and prices up and inventory down. But locally and nationally, many builders are having a hard time keeping up with demand for new construction. This week's City Paper cover piece by J.R. Lind digs into the finer points of what it takes — and what we don't have right now — to produce another building boom.
To meet the demand Harvard projects for 2013 (1.64 million homes nationwide), more than 2 million more housing-related jobs — in all sectors, including manufacturing of household items like appliances and furniture — will have to be created. They won’t get created overnight.
And that means the people still doing the actual work of building a home can name their price — adding even more to the final price tag of a completed home.
SEE ALSO: Local contractors wrestle with growing worker shortage from last September
More than three homes were flipped each day in 2012 in the Nashville area, according to research firm RealtyTrac. And the results were quite profitable: The average profit on those sales — defined as being consummated within 90 days of the earlier home purchase — topped $38,000, or 35 percent. That puts Middle Tennessee in the top 10 nationally, a couple of spots behind Memphis.
Foreclosure rates in the Nashville area decreased in February compared to February 2012 but ticked up ever so slightly from January, according to recently released data from CoreLogic. The CoreLogic data shows that the local rate of foreclosures among outstanding mortgage loans was 1.15 percent for February, a decrease of 0.55 percentage points compared to February 2012. Foreclosure activity in the area was lower than that of the national foreclosure rate, which was 2.85 percent for February. The rate of seriously delinquent mortgages ticked down more than 10 basis points from January and are now at their lowest level since May of 2009.