It is not entirely clear what direction the Nashville real estate market is going to take in the third quarter of 2009 and beyond. There are a number of mixed signals being circulated around the Nashville news media and other sources that fail to provide a definitive prediction for the remainder of the year. Some signs suggest that the Nashville real estate market may have finally bottomed out and may be heading towards recovery, although there are still a number of trouble signs for the region. A good deal depends on the perspective taken - real estate agents are obviously going to embrace the predictions that favor their profession, while news media are likely going to emphasize the harmful and more sensational stories.
According to the Greater Nashville Association of Realtors, a total of 1,783 homes sold during the month of May, which is a drastic decline since the same point in time during 2008. During May of 2008, 2,508 homes were sold, most likely because the first effects of the sub-prime mortgage crisis were starting to be felt. Greater Nashville Association of Realtors President Mike Nichols said “My home sales are consistent with what we have seen throughout all of 2009. Real estate is feeling the same effects as the rest of the national economy. With the recent American Recovery Reinvestment Act of 2009 supported by the FHA, we are hopeful that first-time homebuyers will take advantage of the opportunity to use the $8000 tax credit to help with costs at closing.”
An article in the Nashville Post published on June 29, 2009 stated that foreclosures are still a serious problem for Nashville real estate. “To the welter of recent economic indicators that show the national economy going up, down, or sideways, add one more perplexing number for Nashville. In the past month, after an extended decline, the volume of foreclosure actions filed in Davidson County has abruptly risen to a new peak.” In fact, the Nashville Business Journal reported that local realtors have started efforts aimed at educating agents and consumers about foreclosures and short sales.