While the national trend in real estate is looking slow, and coastal sales anemic, Nashville and its surround suburbs are showing amazing growth with a 16 percent year over year increase.  The city is seeing the results of an improved economic environment and a recipient of homeowners leaving the high cost northeast.

The sales report, released by the Greater Nashville Association of Realtors (GNAR) on Thursday, also shows a 16 percent increase in May home sales over April.The Nashville market, a multi-county geographic area as viewed by GNAR, reported 3,236 closings in April.Year-to-date closings were also up compared to the May 2005 year-to-date figures, an 8 percent increase.

Christie Wilson, GNAR president, said Nashville is poised for continued growth based on May’s record number of pending sales. There were 3,894 sales pending at the end of May, the largest number recorded by GNAR for any one-month period.

…

“Our inventory levels mean great news for buyers because there are more choices on the market,” she said. “The good news for sellers is the steady rise in median price.” The median price for a single-family home climbed to $179,900, a 12.5 percent increase compared with the $159,900 May 2005 median price. The median price for a condominium rose to $143,900, a 6.6 percent increase over the same period last year.

The National Association of Realtors recently predicted a 6.2 percent drop in existing home sales and a 13.4 percent drop in new home sales in 2006. Steadily increasing interest rates are attributed to slowing sales.

However, Wilson said Nashville’s market continues to grow at a steady, moderate pace, in the opposite direction of the national market. She added the “housing bubble” experienced in many parts of the country has yet to make its way to Nashville. via The City Paper

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