RED REPORT – JULY 2018

RED REPORT – JULY 2018

Year to Date still ahead 3%, but July ’18 vs July ’17 off 3%

 3% July 2018 vs July 2017 (annual monthly comparison)
 5% July 2018 from June 2018 (one month change)
 3% Year to Date Closings – 2018 vs 2017 Total Inventories are up 9% for July 2018 verses July 2017.

July eases up a little after a very stronger than usual Summer

One month change from June 2018 to July 2018.
CLOSINGS 
  • Rutherford Closings down 9%
  • Williamson Closings up 1%
  • Davidson Closings down 9%
  • Wilson Closings up 4%
  • Total 4 Counties are down 3%
PENDINGS 
  • Rutherford Closings up 6%
  • Williamson Closings down 7%
  • Davidson Closings down 1%
  • Wilson Closings up 10%

Back in time… Look at the price increases

July 2006 vs July 2018 YTD
  • 2018 Closings 3% higher than 2006 and 3% higher than 2017.
  • 2018 Average Closed Prices are 57% higher at $395,023 & 2% higher than 2017.
  • 2018 Inventories are 4% lower than 2006 & 9% higher than 2017.

The Red Forecast

I have to agree with the National Association of Realtors economist in that the extreme low supply of homes at the lower entry levels are causing prices to increase out of reach for many entry level home buyers. What does this mean for our market? Everyone needs a place to live, so more people are renting until they can afford to purchase a home causing less rental supply which causes rental rates to increase. I think this will also cause more entry level buyers to consider areas further away from their employment that they may not have considered in the past. Middle Tennessee still has a fairly better commute time to affordable housing than other hot real-estate markets around the country so I think it will take some time before we start driving another 30 minutes in order to buy a home. It seems that buyers are just buying less or are ok with renting for now.

Boro Blessings Update:
The winning Teacher will be revealed in the next few weeks when we surprise him/her at their school. We have already met with the winner’s school principal to plan a special event. I can’t give too many details so we won’t ruin the surprise, but it will be one of the most fun gifts I’ve ever been a part of in our community.

We are doing a gift card drive the next few weeks, so if you would like to join in, please drop off a gift card in any amount to Target, Wal-Mart, Kroger or Publix for this winner to buy more supplies that she usually buys with her own money.

By the next time this report rolls around, we’ll have a winner!

Thank you,

Steven

  • Steven Dotson
  • President
  • 1574 Medical Center Parkway
  • Suite 202
  • Murfreesboro, TN 37129
  • Direct: 615-896-1400
  • Office: 615-896-2733
  • www.RedRealty.com
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