New home construction starts and sales in Nashville both increased 9 percent in the second quarter, according to Metrostudy.
There were 1,402 new home sales in Nashville during the second quarter, up 9 percent from 1,287 closings on new homes in the same period of 2013, according toEugene James, Metrostudy’s regional director. On an annual basis (for the twelve months ended June 2014), there were 6,138 new homes sold in the Nashville market, a 23 percent increase compared to the prior twelve months.
Meanwhile, builders began construction of 1,592 new homes in Nashville in the second quarter, also a 9 percent year-over-year quarterly increase, James said. That’s a 21 percent increase on annual basis.
Metrostudy found there is a 1.7 months supply of finished homes on the market, which James said is below Nashville’s norm of 2 to 2.5 months.
“There’s an undersupply of houses that are immediately available,” James said. “The demand of houses is outpacing the supply. Builders are trying to build as many houses as they can to meet demand.”
James pointed to job growth in Nashville as the primary driver in new home activity.
“Nashville’s total employment is near an all-time high,” James said. “Employment is robust and unemployment compared to other markets is relatively low.”
“The Nashville market is doing well,” James added. “That goes back to the job market, especially compared to other markets the size of Nashville.”
Overall, homes sales rose slightly in July, according to the Greater Nashville Association of Realtors. Single-family homes sold for an average of $221,000 in July, up from $204,000 a year ago.
Article from Nashville Business Journal
Written by Scott Harrison