Officials with home builder Jones Company say they have wrapped up their acquisition of more than 150 acres on which they and peers from Drees Homes will build almost 250 houses ranging from 1,800 to 4,000 square feet. Actual construction on the Summerlyn neighborhood is expected to start later this year.
Cassidy Turley's researchers have tallied the numbers and say Nashville's piping hot apartment market has almost 7,800 units under construction. That puts Music City fifth in the country in terms of the square footage being added as a percentage of total inventory. (See image below.) That's possible in part because the region's vacancy rate is almost two points below its historical 6 percent average. You can see those stats and more on Cassidy Turley's updated Construction Report page.
Nashville-area home prices held their own in July, according to the research team at CoreLogic. Year over year, home prices including distressed sales were up 8.1 percent from July 2013. Taking out distressed sales, prices rose 7.1 percent. Both of those numbers were up slightly from June.
The researchers at MetroStudy say it's a pretty simple case of supply and demand. Even though Nashville-area builders have started work on more new homes this year than in the first half of 2013, there are numerous local submarkets with lot supplies "as low as 14 months." That is pushing up land prices and it won't be long before homebuyers will see their tabs rising, too.
Was that the cyclical peak of our housing market?
An index developed by housing finance agency Freddie Mac says the Nashville metro residential real estate market weakened considerably in June, more than erasing the gains from April and May. (See the graphic below.) Freddie Mac's researchers say the main driver of the drop is the downward change in the ratio between payments and income. The relatively good news: Nashville still ranks ninth in the country and its year-over-year improvement still comfortably outpaces the national average.
Negative equity among Nashville-area homeowners finished the first half of the year at 12.4 percent, down from more than 20 percent compared to the figure of 12 months earlier and almost three points better than at year-end 2013. So says housing research and marketing firm Zillow, which puts the total amount of Middle Tennessee negative equity at $2.7 billion and puts the biggest negative equity rates in the region's most rural counties. More than half of the people who still owe more on their mortgages than their properties are worth are less than 20 percent under water.
SEE ALSO: Zillow's release, headlined by a national negative equity number of 17.0 percent
CoreLogic says Nashville-area home prices, including distressed sales, were up 8.0 percent in June compared to the year before. Take out activity in distressed assets and year-over-year price gains slipped to 6.9 percent. Two months ago, those numbers were 9.5 percent and 7.2 percent, respectively, suggesting the housing market is nearing an equilibrium as large gains in distressed sales are fading.
Six-year-old local company HouseLens, which markets videos to help homeowners market their properties, is on the hunt for growth capital. Milt Capps has the details at Venture Nashville, including the projection by HouseLens founder and CEO Andrew Crefeld that the company should double revenues to $3.6 million in 2015.
The company previously received a $500K equity capital investment plus $500K in licensing fees for rights to develop five markets from Stefan and Inga Wiese, a German couple now living in Middle Tennessee, Crefield said. HouseLens employees also are offered ownership incentives.
CoreLogic has published its latest Home Price Index, which suggests that the dour forecasts for 2014 Nashville-area home price gains may come to pass after all. CoreLogic says that, including distressed sales, Middle Tennessee home prices in April climbed 9.5 percent from 12 months before. But take out distressed sales and the year-over-year price gains shrank to 7.2 percent. Two months earlier, they were still in double digits.
SEE ALSO: CoreLogic's national release
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