Tennessee Home Sales Steady, Condo Sales Jump In 2014

  • Wednesday, January 21, 2015

The home-buying market remained active throughout Tennessee in 2014 and picked up steam as the year came to a close, and several signs point to continued vitality as 2015 unfolds, according to year-to-year data compiled by the Tennessee Association of Realtors.

During 2014, the state’s single-family home sales totaled 65,006, down a slight .43% from 2013; condominium sales totaled 5,926, a rise of 6.53%.

Median home prices rose 6.90% for the year to close at $169,900; median condo prices gained 8.58% to close at $149,900.

Of Tennessee’s three major regions, the Middle Grand Division led the way in 2014 with 34,401 home sales (+4.46% over 2013) and 3,366 condo sales (+12.16%). The Eastern Grand Division saw sales of 21,641 homes (+1.22%) and 1,828 condos (+6.84%). The Western Grand Division registered 12,160 home sales (-11.08%) and 1,430 condo sales (-3.51%).

Momentum picked up in the fourth quarter of 2014, when Tennessee’s total home sales (+4.42%) and median prices (+8.56%) rose over the same period in 2013, while fourth-quarter condo sales leaped by 17.35% and median condo prices gained 9.02% from a year earlier.

“Overall, these results show that Tennessee’s home-buying market remains robust and moving in the right direction, which is good news both for buyers and sellers,” said 2015 TAR President Pat Beech. “While the biggest gains last year took place in and around Nashville in the Middle division, we remain optimistic that sales will rise across the state in the year ahead.

“Tennessee remains a great place to live and work,” President Beech said. “Our business-friendly climate, excellent educational opportunities, and a continuing high quality of life are among the many reasons for us to expect real-estate activity to increase as 2015 unfolds.”

Among the positive signs that Tennessee’s home market is likely to gain strength:

1. Rising rent rates are pushing more buyers off of the fence to explore the benefits of homeownership.

2. The National Foundation for Credit Counseling reporting that more consumers are seeking advice about purchasing a home. “Seeing that more people are realizing the value of housing counseling is a sign that the next wave of home buyers will be better prepared to preserve home ownership,” according to the NFCC’s Bruce McClary.

3. Business Facilities, a leading national publication focused on site selection and economic development, recently named Tennessee its 2014 State of the Year for the second consecutive year. Tennessee becomes the first state in the award’s history to win back-to-back honors and the first state to earn the designation three times (2014, 2013, 2009).Unemployment remains low.

Other factors to consider include a continuing influx of new businesses and residents to Tennessee, while a cause for concern could be the extent of troop drawdowns at Fort Campbell and its impact on Clarksville and the Middle Grand Division’s marketplace.

“While the future is impossible to predict with 100-percent certainty, we have every reason to believe that Tennessee will remain a pacesetter in economic activity in 2015, and that the rising tide will keep lifting key sectors including the real-estate market,” President Beech said. 
Real Estate
Kadi Brown: 2024 February Market Report
Kadi Brown: 2024 February Market Report
  • 3/14/2024

The housing market is showing signs of healthy activity, according to the latest report for February 2024. Existing home sales have seen a notable increase, marking the most energetic pace since ... more

Chattanooga Housing Authority Awarded $20,000 For Resilience Projects At Emma Wheeler Homes
Chattanooga Housing Authority Awarded $20,000 For Resilience Projects At Emma Wheeler Homes
  • 3/14/2024

Chattanooga Housing Authority has been awarded a grant for the Butterfly Effect Program funded in part by the Open Space Institute, in partnership with Thrive Regional Partnership and support ... more

Lookout Valley Motel Sells For $3,410,101
Lookout Valley Motel Sells For $3,410,101
  • 3/14/2024

The Super 8 by Wyndham in Lookout Valley has sold for $3,410,101. It is located at 20 Birmingham Highway. The sale was to Shivsakti Llc from B R Lookout Hospitality Llc. more