Midstate market continues to defy rational expectations

Friday, October 18, 2019, Vol. 43, No. 42

“Third Quarter 2019 Home Sales Showed Unprecedented Growth,” reads the Greater Nashville Realtors’ news release announcing third quarter sales numbers. It might sound hyperbolic, but it’s really not overstating the situation.

There were 3,704 home closings reported last month, 13.7% more than September 2018.

Based on pending sales of 3,181 at month’s end, next month’s numbers should bring even more good news since there were a mere 2,662 pending sales at the end of September 2018. All of this points to yet another record year for Nashville real estate.

This is not the case nationally. Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors, says “the housing market, which had been underperforming, is finally coming around.”

Nationally, sales have had two consecutive months of growth and are up 2.6% last month, compared to the 13.7% in the Nashville area.

The median price in Nashville jumped to $318,000 for single-family residences, an increase from $290,000 in 2018. Condominiums increased from $218,150 to $236,000.

Inventory was down almost 1,000 units this September versus the same month last year.

With inventory continuing to shrink and sales on the upswing, the barometer is vastly favoring sellers with buyers clamoring for homes before they are devoured by their eager fellow buyers.

The market usually slows as December approaches, and lack of inventory might make that happen again. But until inventory hits zero, there appears to be no end in sight.

Clayton becomes Engel and Völkers

Neal Clayton, a fixture in Nashville real estate for 38 years, has announced his firm will now “do business as Engel and Völkers” as that brand continues to expand across the U.S.

The firm has announced it has begun to attract top area talent with the name change, citing top producer Amy Jackson Smith’s decision to join the firm.

Clayton and his team of 25 “experienced and community-centric real estate advisers” will work from a Burton Hills office until the completion of the new Engels and Völkers shop, which will reflect the iconic global branding of the parent firm.

“Nashville is continually ranked among the top places to live in the United States and is a significant growth market,” says Anthony Hitt, Engels and Völkers president. “It’s ripe for buyers at the moment with inventory becoming more available.”

Sale of the Week

Paris Avenue has become one of the most popular streets in the 12South area with five sales in the past eight months of $1 million or more. While the price per square foot has been front-of-mind with buyers over the years, that methodology has proven ineffective when pricing houses as of late.

1013 Paris Avenue

The five recent sales on Paris support the abandonment of PSF pricing with prices ranging from $295.16 to $421.38 per square foot. Many in real estate feel location and condition are the most vital ingredients in pricing homes, yet all five were on the same street and in the same condition and were of similar sizes.

The house at 1013 Paris Avenue is the leader in the clubhouse having commanded the $421.38 PSF even though there was a time when the most expensive properties in the 12South area were closer in proximity to Belmont rather than 12South, and crossing 12South was even more risky.

However, this is 2019, and there seem to be no ceilings to pricing.

And no one knows that better than Brett Sheriff and his real estate partner, Theo Antoniadis, both of Pilkerton Realtors. Sheriff has been selling in the area for years and has a condominium named for his late wife, Jenkins Hardin, The Jenkins on Belmont Boulevard.

Sheriff and Hardin are credited with revitalizing the area. In fairness, Jenkins started the movement and brought Brett in shortly thereafter. He took the reins during her courageous battle with cancer and enlisted the able Antoniadis to assist him in his real estate affairs and the partnership has blossomed.

Sheriff broke the Paris Avenue PSF record with the 1013 Paris property that he described as “a Nashville original with the heart of 12South, renovated with uncommon attention to detail by Britt Development,” adding “This 1910 Victorian has been transformed and expanded with 12-foot ceilings, top-of-the-line kitchen with secret pantry.

The house includes 3,714 square feet and a 652-square-foot detached apartment.

There are four bedrooms, four full bathrooms and a half bath, all on an oversized yard. With a sales price of $1,565,000, the deal ended well for both parties as the buyer was represented by Julie Campos of Indwell Realty, a group that has become prevalent in the infill market.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at richard@richardcourtmey.com.