Tennessee Mortgage Demand Slows in April

April home sales in the Middle Tennessee housing market fell 7.6 percent from the same time period in 2006, according to a release from the Greater Nashville Association of Realtors.There were 2,989 home closings reported last month, down from 3,236 closings in April 2006, GNAR announced in a release.

Year-to-date, January through April closings are down 6.4 percent. Last year at this time there were 11,733, compared with 10,979 this year. Inventory at the end of April was up significantly from the same time last year, as well: 20,129, compared with 14,984 in April 2006, due to a lack of Tennessee mortgage activity in the region.

Home prices are still rising locally, the association says.

The median residential price for a single-family home during April was $177,900 and for a condominium it was $163,900. This compares with last year’s median residential and condominium prices of $172,900 and $134,040, respectively.

“While home sales are down a little compared to last year, we must remember that 2006 was a record-breaking year,” says GNAR President Richard Courtney in the press release.

“The fact is that our cumulative numbers show this is the second best year-to-date so far,” Courtney adds. “And when you consider that prices are still rising and pending sales are higher than they’ve been in about six months, it means our real estate market is continuing at a very strong pace in 2007.”

Courtney says the fact more homes are on the market is good news for mortgage loan applicants.

“When considering the increase in inventory, it is important to remember that there a more people living in the Greater Nashville region than ever,” he says. “We still have about a six- to seven-month supply of homes, so the real estate market here remains balanced and healthy.”