When you combine the increased interest rates with rising home prices throughout the area, buying power is decreasing exponentially.
Nashville, TN (PRWEB) July 26, 2013
For potential buyers, the time to act is now. In the last month, interest rates have risen a full percentage point. This increase leads to an 11 percent decrease in buying power for the consumer. “When you combine the increased interest rates with rising home prices throughout the area, buying power is decreasing exponentially,” Jolly said.
Basing this information on data from June 2013 sales, Mr. Jolly reported a 23.8 percent increase in home sales in the Nashville area over the same month in the previous year. June sales were equal to the sales of the previous month. However, May’s sales were up nine percent over April.
Inventory levels continue to remain at 5.5 months of sales at the current rate in the Nashville. This is a very good sign that the local real estate market has stabilized. While the industry considers six months inventory to be balanced, this slightly lower number indicates that demand is gaining in the area.
Mr. Jolly further reports that home values have continued to rise in Nashville since the beginning of the year. The median value of a home has risen by nearly $40,000 since January.
Mr. Jolly concludes his report with predictions for the Nashville area real estate market for the ending half of the year. He further provides advice on what anyone interested in buying or selling a home in the area should do at this time.
Those interested in seeing the complete information on sales, inventory, pricing and outlook in the Nashville Real Estate Market should go to the Nashville Real Estate Report for July 2013. Steve Jolly is one of the Top Real Estate Brokers in the Greater Nashville Area and also owns NashvilleRealEstateNow.com.