The Middle Tennessee MLS (Realtracs) just released May 2009 stats. The following graph and analysis are based upon the residential single family homes and condos market. As you may recall in April, closings were up almost 65% from January. Did May continue breaking our expectations?
Total Inventory (Good)
Inventory levels continued a slight rise in May, up 1.2 percent from April and 10.8 percent since January. There were a total of 17,626 active homes and condos in Nashville last month, compared to May 2008 when there were 18,455 on the market, an encouraging year over year drop of 4.5 percent.
Pending Sales (Mixed)
Pending sales in Nashville are up rather significantly in 2009. Since January pending sales have soared 56 percent which is also 10.5 percent higher than April. However, compared to the same period in 2008, total pending sales are down a sharp 19.6 percent when 2,489 properties were pending.
Closed Sales (Mixed)
There is a very similar story to tell for Nashville’s closed sales as well. Since January closings have skyrocketed an astonishing 86.5 percent, a full 22.4 percent higher than April’s closings. However, compared to the same period in 2008, closings are down a rather sobering 25.6 percent when 2,379 properties closed.
Median Prices (Mixed)
Median prices have remained extremely stable so far in 2009, up 1.9 percent since January to $168,094. However, the median price is down 10 percent since May 2008 when the median price was $186,004.
Months of Inventory (Better)
Based on May’s closed sales, it would take 10.2 months to clear it out our excess inventory, but based on pending sales (contract accepted but not closed yet) it comes to only 8.8 months.
It should be mentioned that January 2009 was one the worst months for closings in Nashville. In fact, it was the first time there were less than 1,000 total real estate closings since 1994. That understood, our market has truly picked up since January. Based upon the fact that the median price is falling and closed sales are up drastically, one rational conclusion is that first time buyers in lower prices ranges are driving our Nashville real estate market.