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VOL. 38 | NO. 31 | Friday, August 01, 2014

2014 a big year so far for sales of $1M-plus home sales

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Forbes magazine has included Nashville in yet another list of wonderfulness.

Earlier this year, the publication proclaimed the Nashville area as a place to invest in real estate, forecasting 23 percent growth in the Midstate over the next three years.

So far, Forbes has proven accurate, especially as it relates to upper-end, $1 million-plus sales.

At this time in 2013, there were a healthy 101 sales of $1 million dollars or more. This year, there are 179.

In addition to those sales, there are 53 pending sales of $1 million or more with another 39 under contract, boding well for the days to come. If these trends continue, 2014 will mark the most high-end sales in the area’s history.

2014 has taken an interesting path to these historic numbers.

While January began with a respectable 22 high-end sales, the number dropped to 14 each in February and March.

As you might recall, the weather outside was frightening in January and February, and rich people don’t like to be cold.

Once the weather broke, the market exploded with 23 $1 million-plus sales in April, 33 in May and an unheard-of 43 in June.

As of this writing, there were 23 in July, with a little time before the end of the month to pull many of those 53 pending sales into the closed column.

In these upper-end sales, often referred to as luxury homes, the condominium market continues to perform well with five sales over $1 million this year, compared to only one at this time last year.

In addition, there are at least two sales pending, not including the $1 million pending sales in the new 1212 building, with all of its upper-end units under contract.

Last year’s biggest sale at this point was $7.2 million, while this year’s is $5 million.

There have been four sales of $3 million or more this year, and three of more than $4 million.

There are currently 50 on the market for $3.5 million-plus, with none under contract or pending.

“Where are all of these people coming from?” many ask.

There seems to be a reverse Beverly Hillbillies syndrome, with Californians telling their kinfolks to move away from there.

The influx of Californians is staggering, and in all areas – music certainly, but public relations, health care, publishing, finance, commercial development and more.

While home prices have continued to climb in the Greater Nashville area, and the Californian real estate market reeled downward during the Recession, home prices in California are higher than here, although the gap is closing.

Homeowners can still sell there and purchase larger homes with more land here, although there are fewer cement ponds here thanks to the limestone underlayment.

Sale of the Week

132 Gale Park Lane, located behind the Melrose Kroger near I-440, sold last week for $334,000 some 95 days after Nathan Hysmith of Reliant Realty listed it.

Chrissy Kirkwood of Kirkwood Property Group delivered the buyer to this three-bedroom, three-bath home with 1,404 square feet, which Hysmith described as “a rare courtyard unit.”

The owner had purchased the unit from the developer in August of 2012 for $269,500 and sold less than two years – barely, and perhaps unfortunately for tax purposes – for $334,000.

This nifty gross profit of over $60,000 speaks to the demand of the area and the attractiveness of the design.

The construction meets all of the current market standards with a bedroom and a full bath on the first floor and the other two bedrooms and bathrooms upstairs.

As the community caters to the young, the upstairs master suite is not detraction, for there are more babies than boomers in the community.

The flooring includes tile, finished wood and carpet. The kitchen has stainless steel appliances and subway tile splashes.

An association fee of $110 per month provides the residents with clean, landscaped streets and common areas.

And the home construction features green features such as dual flush toilets and cellulose insulation.

With public education in flux as it pertains to elementary schools, having the desirable Percy Priest Elementary as its designated source of education serves the development well.

Richard Courtney is a real estate broker and is affiliated with Christianson, Patterson, Courtney, and Associates. He can be reached at Richard@richardcourtney.com.