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Surging Nashville home market sets sales price record

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Staff Reporter-Nashville Business Journal

For the first time ever, the median sales price for a single-family home in Nashville surpassed $200,000 in June, the Greater Nashville Association of Realtors announced today.

The median price for a single-family home sold in Nashville last month was $205,950, up from $179,000 a year ago. The median price for a condo sold in June dropped to $159,000, down from $160,000 a year ago.

The previous high for a single-family home was $196,000, which was set back in June of 2007.

"Seeing prices increase may encourage some people to consider selling, which would be helpful in light of the fact that inventory remains low," said GNAR President Price Lechleiterin a news release. "Quality properties are selling very quickly right now."

There were 3,038 home sales reported in the Nashville area in June, up 23.8 percent from a year ago.

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"The positive trends in real estate activity should not be taken for granted. Interest rates have begun to increase, which is not surprising," Lechleiter said. "But, there are questions about possible decisions by the federal government impacting the mortgage interest deduction, FHA, Fannie Mae and Freddie Mac. And, several key regulations from the Dodd-Frank legislation that negatively impact mortgage lending are scheduled to go into effect in January of 2014. We are closely monitoring what happens with these issues and working with legislators to best protect homeowners, commercial property owners and the health of the real estate industry as a whole."

Single-family homes sold in June had sat on the market for an average of 73 days. Nashville's total inventory of available homes, condos and lots stood at 16,576 at the end of June, down from 19,136 a year ago.

"Increasing sales during the summer season is typical, but the number of closings would likely be even higher if more quality inventory were available," Lechleiter said. "There is currently only about a four-month supply of single-family homes, not counting the fact that more than 3,000 of the available properties have contracts pending. Buyers are well-represented and know what they are looking for in their home searches. Potential sellers should remember that homes that are truly market-ready are moving well, but buyers are only interested in the properties that have been prepared and priced properly."

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