New home sales in Nashville are growing faster than anywhere else in the U.S.

Chalk up another one for Nashville’s housing market.

Nashville’s new home sales grew 17 percent year-over-year through January 2015, according to a new report from CoreLogic.

That makes Nashville the fastest-growing new home sale market in the U.S., according to the California-based housing research firm.

Here’s what Sam Khater, deputy chief economist with CoreLogic and author of the report, wrote of Music City’s new home sale growth: “Nashville is not only exhibiting strength over the last year, but it is one of only five markets that have higher new home sales in 2015 than in the very early 2000s when markets were normal.”

A similar report earlier this month found Nashville’s housing market has rebounded stronger than anywhere else in the country since the recession, with median home prices up 11 percent than peak values before the recession.

According to CoreLogic, San Jose, Calif., was the second-fastest-growing market, with new sales up 14 percent. Coming in third was Atlanta, where new sales grew 10 percent from a year ago.

The growth in new home sales can be attributed to the swelling population in the Nashville region, which has grown nearly 13 percent since 2000, according to the U.S. Census Bureau’s 2013 five-year American Community Survey.

Recent figures from the Greater Nashville Association of Realtors found there were 2,940 closings in April, a 6 percent bump from the same month last year.

Expansion of the new home market touches a slew of industries in Nashville: the construction and home-building sector, real estate brokers and bankers issuing mortgages.

Several local banks have cited big benefits from the region's housing market.

In a first quarter earnings call last month, Avenue Bank Chairman and CEO Ron Samuels attributed the bank’s record earnings to in part to “the continue strength of Nashville’s economy,” saying Avenue anticipated further windfall this year from the region’s “robust mortgage market.”

Columbia-based First Farmers and Merchants Bank attributed a large part of its first quarter loan growth to increased residential mortgage volume.

Another, Franklin Synergy Bank, has posted eye-popping gains from its heavy emphasis on the real estate market in Williamson County.

 

Article from: Nashville Business Journal

Written by: Scott Harrison