Nashville Real Estate Market Scales Back

BRENTWOOD, Tenn., June 2 /PRNewswire/ -- The economic slowdown has forced Nashville real estate developers to back off some of their more ambitious plans. Commercial and single-family homes, as well as Nashville condos and apartments have all been adversely affected. "From homes in Brentwood to high-rise condominiums in Nashville, everyone is being forced to adjust," said Jeff Fulmer, a Nashville Realtor.


The downtown Nashville condo market has experienced tremendous growth in recent years, but now developers are scrambling to scale back. The premier Nashville condominium, Signature Tower, has reduced its grand vision, from 70 stories with 400 units to 50 stories with 50 larger sized units. Condo developments, such as The Braxton in Ashland City and 5th and Main in East Nashville managed to finish construction, only to end up in receivership. Woodland Commons (formally 800 Main) has announced it is downsizing from a 336 to a 266 unit apartment community.


There are "green shoots" in the Nashville real estate market. For example, the new high-rise Nashville condo in The Gulch, Terrazzo, recently sold units ranging in price from $349,000 to $734,000. Icon in the Gulch began selling last summer and has nearly sold out; however, many of their buyers have been slow to close due to the economy. The midtown Nashville condo development, The Adelicia, sold out earlier this year after offering reductions on their remaining units.


This trend toward downsizing is also spreading to the suburbs. The Brentwood Journal reported that only 12 permits have been issued to build new homes in Brentwood TN this year. During the same period, there were 50 permits for new homes in Brentwood TN in 2008; 109 permits in 2007. Meanwhile, the number of permits for add-ons and remodels for Brentwood homes has stayed steady in all three years at around 60.


According to the latest Zillow Real Estate Market Reports, homes in Brentwood TN have decreased 3.7% in the first quarter of 2009, compared to the first quarter of 2008. Nationally, home values have decreased 14.2% during the same period. Single family homes in Williamson County (which includes homes in Franklin and Brentwood) have decreased 10% in value in the last year.


On the average, Franklin TN condos and Brentwood TN condos have lost 4% of their value in the last year, while actual closings have dropped by 29%. "Naturally, developers are going to think twice before breaking ground on a project when faced with those kinds of numbers," Fulmer said. "It's positive that less is being built right now, so demand can catch up to inventory."


While it is a painful time for developers, it is a unique opportunity for buyers and investors looking for Nashville real estate. "I know of condos in Franklin and Brentwood TN that are priced well below market," Fulmer added. "If you've been on the sidelines, now is a great time to take advantage of the deals." For more information, contact Jeff Fulmer at http://www.jefffulmer.com/ or 615-545-8611.


SOURCE Jeff Fulmer Real Estate