November home sales in the Nashville area made their largest leap all year, jumping by 24 percent compared to the same month in 2015. And realtors have a theory as to why: The outcome of the presidential election.
Realtors’ best guess is that the increase was in part a reaction to uncertainty leading up to and following the victory of President-elect Donald Trump. Another related factor was the threat of rising interest rates. The Federal Reserve has signaled in recent weeks that interest rates would rise, but after the election. And they have, by about half a percent.
Denise Creswell, president of the Greater Nashville Association of Realtors, says November home buyers were eager to lock in low rates before they went up.
"I think just folks felt uncertain about how the election would pan and out and many people just went ahead and while the interest rate was lower they went ahead and purchased a home," Creswell says.
There were nearly 3,000 closings for the month of November, which is still lower than the peak spring and summer months.
Inventory across the Nashville area continues to decline, dropping 10 percent from this time last year.