Runaway market slows, still ahead of record 2020 pace

Middle Tennessee real estate unit sales increased 24% in May compared to May 2020, Greater Nashville Realtors figures show. With inventory as low as it is, there are those who might wonder how these sales could occur.

While the 4,063 closed sales are more than the 3,267 sales in May 2020, they lag slightly behind April’s 4,119 sales. With seasonality built into the real estate data, sales actually dropped from April to May.

Sales classified as pending were lower in May (3,788) compared to April (3,837). In order for June to eclipse the previous June, some 4,191 sales must occur. With 3,778 pending sales, the number is likely to surpass June 2020 based on anecdotal numbers from leading Realtors.

One thing perplexing members of that focus group is there are considerably fewer showings than in previous months. Showings normally slow toward the end of May since there are graduations to attend. And this year had twice that amount at some institutions that staged a ceremony for those who would have flipped the tassel in 2020 but were denied by the pandemic.

Summer weddings also eat into sales numbers, especially with those weddings delayed from last year taking place this year.

And amid all those delays, there were more home sales in the area than in any previous year. Clearly, some things can wait and some can’t.

Now with masks removed, crowds gathering and real estate brokers and their clients riding in the same cars, there could be a slight decrease. Of course, that is based on the cannibalism of the market, as all of the properties are being devoured once they show themselves.

New construction has instituted new policies as builders rarely price homes before completion for two reasons: There is wide fluctuation in the cost of materials and the value of their product is increasing astronomically.

This phenomenon is driving buyers crazy. They see houses they would like to buy and have the wherewithal to purchase the home, but the sellers will not give them a price.

Another new wrinkle rearing its ugly head has buyers being forced to submit offers with no appraisal or financing contingencies. Most of these buyers have witnessed firsthand the strength of the market, having lost a home or two along the road to the house they are finally able to get under contract.

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