VOL. 42 | NO. 25 | Friday, June 22, 2018
High-end homes, condos unaffected by slowing sales
When the Nashville area first began to hit the $1 million mark for residential dwellings, those transactions were confined to Belle Meade.
And for years, the Nashville real estate market consisted of Nashvillians buying the homes of other Nashvillians. There was little migration into the area with much of the growth resulting from the children of current residents leaving the nest but choosing to move into a nearby tree.
Following the end of the Recession, when with the city’s borders began being overrun with migrants to the tune of 80 people per day by some estimates, upper-end real estate purchases began to filter into different areas as newcomers saw no value in the vast suburban estates of Belle Meade with its higher property taxes.
Many of the new breed of buyers were more accustomed to urban life, and the term walkability worked its way into the “location, location, location” formula. There were years when the Belmont area scored a higher price per square foot than Belle Meade.
As was reported last week, the number of real estate transactions is slowing, at least as compared to last year, and inventory is on the rise. Both of these are viewed as healthy trends as the frenetic pace of the past five years has been cumbersome for those in the profession. Homebuyers have not had a chance in this market.
Yet, even though the overall transactions are dropping, the upper-end sales are climbing and demonstrating strength in the condominium market that even the wildest dreamers – with the exception of Tony Giarratana, perhaps – dared imagine.
Giarratana’s project at 505 Church Street continues to close sale after sale of more than $1 million. In what has been described as the most bizarre of all real estate transactions, the 505 development has had three different penthouse units sell for $5 million each, and they were sold as shells – walls and floors only. There were no floor coverings, cabinets or appliances – nothing.
While not as staggering, the Icon has returned with newfound swagger after taking a backseat to the numeric condos at 1212 and 505.
Last month, Alex Brandau and John Cundiff, both of Keller Williams fame, listed and sold a condo in the Gulch for $4.71 million, a mere $1,221 per square foot.
The owners had paid $1,354,501 for the home in 2008, and the palace had undergone extensive renovation. With three bedrooms, three full baths and a powder room, the unit includes 3,856 square feet of living space.
Owning this property is not cheap. The homeowners’ association fee is $1,242 per month, and the property taxes are $1,202 monthly for a total monthly expense of $2,444.
This was the second unit in the Icon to move for a big number. Another 22nd floor unit sold for $1,225,000 in May.
At this time last year, there were four condo sales of more than $1 million. This year there are at least 26, with many of the 505 sales not reporting on the Multiple Listing Service or other reports while awaiting deeds to be filed.
This year, there are 158 single-family homes that have sold for more than $1 million in Davidson County, Realtracs shows, compared to 131 for the same period last year.
With condos added to the mix, there have been 184 upper-end sales total this year versus 135 for the same period last year, a 36 percent increase.
In short, the paltry 4.5 percent drop in overall sales is not reflective of a dying market. There are no bubbles being burst in Nashville, only some roofs blown skyward.
Sale of the Week
The Hillsboro Village area now boasts several homes of $1 million or more each month, with 2502 Ashwood Avenue as an example. It hit the charts last week at $1,215,000 with Michele Keith of Parks representing the seller, Michele K. Keith, not to be confused with the other co-owner Michele E. Keith.
Michele E. Keith and Michele K. Keith are a mother-daughter team that fared well with the restoration project they did with the highly regarded Britt Development Group.
The Keith clan purchased the property for $425,000 and tricked it out in Britt Development fashion with hardwood floors, quartz countertops, stainless steel appliances and a master bedroom right out of the movies.
The home’s 3,627 square feet coupled with it s sales price delivered a price per square foot of $335, a number that would have raised eyebrows in the past. However, with condos moving at $1,200 plus per square foot, the $335 seems like a stainless steal.
Richard Courtney is a licensed real estate broker with Christianson, Patterson, Courtney, and Associates and can be reaches at firstname.lastname@example.org.