First Time Home Sales Drive August Numbers

August home sales in the greater Nashville area dropped 9% from last year. The market has fallen 23% year to date.

The median residential home price continues to hover around 160-thousand dollars.
A higher volume of short sales is the primary reason for depressed home prices, according to Greater Nashville Association of Realtors president Mike Nichols. Banks are becoming more willing to negotiate with owners who owe more on their house than they can sell it for.

Nichols says high-priced homes also just aren’t selling well, so they aren’t boosting overall sale prices.

“First time buyers are the ones buying homes right now, so it’s the lesser expensive homes being absorbed.”

Nichols says the $8,000 first time homebuyer tax credit is driving most sales. It even has many high-end realtors, like Sue Chilton, working with first time buyers.

“Right now, I’ve been pleased to be able to have some entry level people to work with because they’re the ones who are really feeling an urgency to buy.”

The first time homebuyers tax credit expires December 1st.