Home sales in the Nashville area continued to improve in January. That’s after last fall marked the end of a three year slide. Sales are up 6 percent compared to January of last year, thanks largely to the extended first-time homebuyer’s tax credit.
The average price for a home actually dipped slightly compared to a year ago. Lucy Smith, president of the Greater Nashville Association of Realtors, says that’s because new buyers are taking advantage of a federal tax credit, and shopping for less-expensive homes.
Smith says they’re also looking at condominiums. Compared to a year ago condo sales are up almost 60 percent.
“There are a lot of people that are interested in their first home option being a condominium, versus a house with a yard to take care of. Being in a situation where the buildings and everything around you are being taken care of is a very positive thing for a lot of first-time homebuyers.”
Also helping condo sales have been several recent auctions in downtown Nashville, selling units at substantial discounts.
The federal tax credit was originally held over after a November deadline, but Smith cautions not to expect another extension when it expires in April. She says realtors had to fight hard for the first extension, and Washington now appears poised to tighten its budget.