The latest edition of The Rula-delCarmen Report can be found by clicking the image below.  Some of the highlights from this month’s edition include:

• December Nashville home sales increased by 18.2% from a year earlier
• Nationwide housing starts were down slightly in December (2.2%)
• Remodeling Market Index rises to a five-year high

Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions.  We are here to help!

The latest edition of The Rula-delCarmen Report can be found in the link below.  Some of the highlights from this month’s edition include:

• October Nashville home sales increased by 15.6% from a year earlier
• New-home sales rise 5.7% in September
• Improving Markets Index expands to 30 metros in November
• Remodeling activity remains slow under current economic conditions
• U.S. foreclosure activity hit 7-month high in October

Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions.  We are here to help!

The newest edition of The Rula-delCarmen Report can be found in the link below.  Some of the highlights from this month’s edition include:

• September Greater Nashville home sales increased by 16.9% from a year earlier
• The number of improving U.S. housing markets nearly doubled in October
• Nationwide housing starts declined in August by 5.0% but permits for new construction rose
• Nationwide new home sales declined 2.3% in August
• Commonly overlooked roofing repairs

Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions.  We are here to help!

The latest edition of The Rula-delCarmen Report can be found in the link below.  Some of the highlights from this month’s edition include:

• July Nashville home sales increased by 15.8% from a year earlier
• Nationwide housing starts were down slightly in July (1.5%)
• Nationwide builder confidence measures were unchanged in August
• Nationwide new home sales were virtually unchanged in July

Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions.  We are here to help!

http://www.marketwatch.com/story/top-10-real-estate-markets-in-us-college-towns-2011-08-10

With the construction on the Music City Convention Center and the recent announcement of expansion plans by the Country Music Hall of Fame, downtown appears to be primed for improved growth over the next few years.  But what about living spaces in the downtown area?  How have sales at the various downtown Nashville condominium and loft projects fared this year?

Advertising from some of the downtown condo projects may indicate that the market is showing some signs of life after a couple of years of sluggish sales.  The Encore, which sits squarely within the SoBro neighborhood between the planned Music City Center and the Schermerhorn Symphony Center, recently announced that the development is 95% sold with only 15 units remaining for sale.  The Encore’s advertising also mentions that 15 units went under contract/pending since May of this year, another sign that there is an increase in buyer activity downtown.

We also looked at the data in the Multiple Listing Service (MLS) for downtown condo and loft units, and through August 1 of this year, downtown condo and loft sales are up approximately 29% in the 37201 and 37219 zip codes.  These zip codes encompass the majority of the downtown condo and loft living options, such as The Encore, The Exchange, Kress Lofts, Viridian, The Cumberland, Church Street Lofts, Ambrose Lofts, The Quarters, and Howell Park.  It is also important to note that the available MLS information does not include all of the new construction sales over the past two years since some of those condo units could have been sold directly without advertising on the MLS.

For those buyers considering a move to the downtown Nashville core, now is a great time to explore your options in more detail given the favorable interest rate environment and all of the new attractions being added to the downtown area.  Feel free to give John (615-473-2632) or Ben (615-483-3138) a call to learn more about many of the exciting condo and loft projects available.

References:

http://www.tennessean.com/article/20110729/NEWS01/307290068/Hall-Fame-tunes-growth?odyssey=tab|topnews|text|FRONTPAGE

http://www.bizjournals.com/nashville/news/2011/06/16/officials-break-ground-for-new-omni.html

The current Middle Tennessee real estate market has certainly tested the nerve of both buyers and sellers as both sides try to find the best approach going forward in this uncertain climate.  A trend that we are seeing in the Middle Tennessee market is that sellers are moving on to their next house (or their next job in a different city) and simply deciding to rent their current home instead of selling at what they consider to be depressed prices, with the hopes of getting a better price as the market stabilizes next year.  Additionally, some buyers who have been searching for their next home have decided that “sitting on the sidelines” and renting temporarily makes sense until they find that “steal of a deal” that they “can’t pass up.”

We spent the last few days compiling some interesting data (that at least anecdotally) supports the idea that rent prices have increased dramatically over the past two years.  We examined all Multiple Listing Service (MLS) listed rental properties from 2009 to the present in the 37203, 37212, and 37215 zip codes (the Nashville zip codes that make up the mid-town “core”).  These rentals include condominiums, single-family homes, and multi-family dwellings (such as duplexes and triplexes) that were leased on the MLS.  The 2011 data consists of closed transactions only and does not include currently available rentals.

As the information below shows, the average per-month rent price rose significantly in all three zip codes.  Given that some homeowners have turned to popular sites like Craigslist.org to find a tenant, this data is by no means complete with regard to the rental market in the mid-town Nashville core.  This data does suggest though that the number of renters has increased significantly in the last two and a half years, driving up rental rates.  Even more surprising is that the rent rates are up significantly despite the fact that number of MLS-listed rental properties jumped from 2009 to 2010.  For example, the number of properties almost doubled from 2009 to 2010 in the 37203 zip code, yet rental rates rose from $1,541 per month to $1,643 per month over the same timeframe.

So what do these statistics mean for buyers?  Buyers who are “sitting on the sidelines” might wish to further explore the home purchase option rather than paying escalating rental prices.  Also, if you are an investor-buyer, now is a great time to buy your next investment property given the rising rental rates and the favorable interest rate environment.  If you are interested in exploring home purchase options in more detail, don’t hesitate to call John Rula at 615-473-2632 or Ben delCarmen at 615-483-3138.

The Rula-delCarmen Report 7-21-11

In the current lending environment with tighter underwriting standards and what seem like ever-changing condo approval guidelines, buyers and sellers can easily become frustrated with the condo financing process.  Lenders are frequently rejecting loans not based on issues with the borrower but based on issues with the condominium project.  It is certainly helpful for buyers and sellers to understand the basic condo guidelines for different financing options.

For owner-occupied properties, most buyers opt for conventional financing or FHA financing.  For investor properties, most buyers opt for conventional financing as FHA financing is not available.  Conventional loans require the lender to ensure the condo meets Fannie Mae/Freddie Mac guidelines.  FHA loans provide for less-stringent borrower qualification standards and down payments as low as 3.5%.  In order to obtain a FHA loan on a condo, the condo project must be approved by FHA.  The Fannie Mae/Freddie Mac and FHA condo guidelines are essentially the same.

The basic Fannie Mae/Freddie Mac and FHA guidelines for condos are:

• No single entity may own more than 10% of the total units.
• At least 50% of the units must be owner-occupied or 2nd home.
• The annual budget must be deemed sufficient and must allocate at least 10% of total income towards reserves.
• No more than 15% of HOA dues may be delinquent.
• Additionally, FHA requires a maximum FHA concentration (the percentage of FHA loans in the project) of 30%.

There are some other guidelines relating to insurance coverage and pending litigation but they are generally not an issue with most condos.  There is some room for leeway in the above guidelines for certain loans.  For example, for certain owner-occupied conventional loans, the 50% owner-occupancy requirement, the delinquent HOA dues requirement, and the budget review and reserve requirement may be waived.  Additionally, Fannie Mae/Freddie Mac does permit lenders to apply for guideline waivers but most lenders are reluctant to pursue this option.  Recently, the biggest hurdle in the above guidelines has been the budget reserve requirement.  Many condo associations, both small and large, have had to adopt the 10% reserve allocation and revise their budgets in order to facilitate financing on their units.

http://www.marketwatch.com/story/rates-on-30-year-fixed-rate-mortgage-holds-at-45-2011-06-23