Drop in Closings Show a Need for New Construction

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Drop in Closings Show a Need for New Construction

Data for the month of July showed 4,314 home closings according to figures provided by Greater Nashville REALTORS®. This figure indicates an 8 percent decrease from the 4,677 closings reported for the same period last year.

“In the past, we’ve always viewed a decrease in sales as a negative point,” said Brian Copeland, Greater Nashville Realtors president. “In this case, for many buyers and Realtors, this is a welcomed statistic. We’ve had so many stock shortages, it’s inevitable that sales will decrease proportionately.”

A comparison of sales by category for July is:

2020 2021

 

CLOSINGS 4,677 4,314
Residential 3,934 3,454
Condominium 499 635
Multi-Family 27 31
Farms/Land/Lots 217 194

 

There were 3,365 sales pending at the end of July, compared to 4,192 pending sales at this time last year. The average number of days on the market for a single-family home was 22 days.

The median price for a residential single-family home was $415,075 and for a condominium, it was $292,735. This compares with last year’s median residential and condominium prices of $343,968 and $239,900 respectively.

Inventory at the end of July was 5,097, down from 8,962 in July 2020.

The current inventory of properties by category, compared to last year, is:

2020 2021

 

INVENTORY 8,962 5,097
Residential 6,209 3,204
Condominium 990 591
Multi-Family 46 78
Farms/Land/Lots 1,717 1,224

“Inventory is a major driver of closings being down for this month,” Copeland added. “Until we can get more new construction units coming out of the ground and a stable flow of sellers listing their existing homes, we will continue in this shortage. With COVID’s resurgence, it will be a critical few months for real estate inventory.”

About Us: Greater Nashville REALTORS®:
Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict code of ethics.

The data collected for this release represents nine Middle Tennessee counties: Cheatham, Davidson, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson.

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