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January home sales fell off from December, but closings easily topped figures from a year ago, according to the Red Report.
Total closings went up 8 percent to 183 homes sold this January compared to 169 the same month a year ago, Steven Dotson, president of Red Realty, reported Monday in his monthly tabulation.
Average closed prices were down 5 percent from January a year ago, and Rutherford closings fell 21 percent from December with average closed prices dipping 10 percent.
“The January to January comparisons are positive signs the market is slowly improving,” Dotson said in the report. “Last year was the first full year without any temporary tax incentives, so this year we should able to fairly compare 2012 to 2011.”
2010 was marked by a federal tax incentive passed as part of President Barack Obama’s economic stimulus package and made home sales jump dramatically that spring.
For the four-county area of Rutherford, Williamson, Davidson and Wilson, closings jumped 19 percent this January to 836 from 703 a year ago. In comparison, the region finished 2011 with a flourish, closing 1,146 homes.
Rutherford County had 253 homes pending in January, up 6 percent from the previous month.
“So far, I think January’s pendings showed us 2012 will be an improvement over 2011 and 2010,” Dotson said.
The number of pendings should make prices stronger in February and March compared to those in the other counties, Dotson said.
“Strong in pendings is a good sign,” he said. “It seems like ever since Christmas it’s been crazy in our office.”
A report prepared by Richard Lewis of EXIT Realty showed Murfreesboro sales remained steady compared to last year while Smyrna’s sales jumped 35 percent and La Vergne’s went up 17 percent after a weak showing in 2011.
Sixty percent of Murfreesboro’s January sales were under $175,000, 90 percent of Smyrna’s were for less than $175,000, and 78 percent of La Vergne’s went for less than $125,000, according to Lewis’ report.
“We are seeing some distress sales come off the market,” Lewis said. Those include bank foreclosures, HUD-owned homes and short sales in which the seller owes more than the home is worth.
“We’re going to continue to see prices drop in certain price points because of distress sales,” Lewis said, noting some experts believe those problems could stay in the pipeline more nearly two more years.
Interest rates remain at 3.75 percent to 4 percent for buyers with good credit, but lenders are requiring at least 3.5 percent down and some are looking for 5 percent, Lewis reported.
First-time buyers who qualify can buy without putting money down, but special restrictions apply, so they need to check with their lender, according to Lewis.
As 2012 continues, job creation will be a crucial part of the economy, Dotson said.
We have to continue to add jobs in Middle Tennessee in order to speed up the recovery for our community,” Dotson stated. “Our politicians and Chamber of Commerce executives should be commended for their diligent work to help our communities maintain a positive business environment so that others will want to locate here.”
Rutherford County wrapped up 2011 with the announcement that 1,150 jobs would come here in 2012 through an Amazon.com distribution center being constructed on Joe B. Jackson Parkway in southeast Murfreesboro.
Courtesy The Career Institute
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