Nashville, TN
MARKET SPOTLIGHT: The Southeast
MIAMI-FORT LAUDERDALE-WEST PALM BEACH, FL PROPERTIES WITH FORECLOSURE FILINGS
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no boundary regulations in place to restrict develop- ment, the metro’s stock of land is getting used up and so land prices have risen dramatically. “The big picture of Nashville has evolved to a neat city of pocket neighborhoods and each neighborhood has developed its own character,” he explained. “Af- fordable housing is very much an issue here. We have the double whammy of not having enough housing stock to begin with, along with gentrification of the old- er areas that have evolved into higher-end markets.” While he constantly gets phone calls from institution- al investors looking for multi-family products of 200 units plus, smaller investors are still active as well. “There’s still plenty of active house flipping going on, but they’re getting more narrow margins,” he said. Of all the homes sold in the Nashville metro area during the first quarter, 9.6 percent of them were flips, according to ATTOM. Numbering 691 in all, total flips were 16 percent above the number reported for the same quarter a year ago, but are down from their peak of 933 flips in the second quarter of 2006.The median purchase price for a property to be flipped was $175,000 while flipped properties were sold for a median price of $229,000, a 30.9 percent gross return on investment. Not on anybody’s radar for its number of foreclosure properties leading up to the national market crash and the recession that followed, in 2018 the Nashville metro area reported a total 1,768 properties with foreclosure filings, a rate of one foreclosure filing per every 415 housing units, a 29. 43 percent increase from 2017.
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Nashville is the cool kid on the block right now so we have a lot of population growth. The business environment is phenomenally good, and there’s no state income tax. The tourism thing just really took off. We are blessed with a very healthy auto sector here. One of our strengths is we do have a very diverse economy.
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In the first quarter of 2019, the metro area reported 5,537 properties with foreclosure filings, a foreclosure rate of one in every 18 housing units with a foreclosure filing in the first quarter, and a 24.43 percent increase from the same quarter last year. Another major source of potential deals during the recession – total dis- tressed sales – now represents only 13.1 percent of all home sales in the metro area for the quarter, a 7.4 percent decline from the same quarter of 2018. The percentage of REO sales, short sales and third party foreclosure auctions were down slightly. ATTOM reported the median sales price of $256,000 for a home in the Miami metro area during the quarter, a two percent yearly increase, and up 150 percent from the post-recession bottom price of $102,500 reported for the first quarter of 2011. With a lot of overpriced properties on the market, Garcia suggests that new investors to the area seek out good wholesalers to work with so they can find proper- ties that properly meet their investment criteria.
NASHVILLE: A TOUGHER PLACE FOR NEW INVESTORS
Known as Music City, USA, the state capitol of Nash- ville was named the fastest growing city in the state of Tennessee in 2019 by 24/7 Wall Street. In 2018, Forbes ranked the metro area 17th on its list of “Best Places for Business and Careers”. Home to nearly one-third of the 1.8 million people who reside in the greater Nashville metro area, which posted an unemployment rate of 2.4 percent in May 2019. “Nashville is the cool kid on the block right now so we have a lot of population growth. The business en- vironment is phenomenally good, and there’s no state income tax,” said Martin Heflin, Faculty Director of the Real Estate Emphasis MBA program at Vanderbilt Uni- versity. “The tourism thing just really took off. We are blessed with a very health auto sector here. One of our strengths is we do have a very diverse economy.” A long-time developer by trade, and president of Ver- ta Development LLC, Heflin noted that while there are
MARTIN HEFLIN
The Nashville metro area reported 379 properties with foreclosure filings in the first quarter of 2019 for a foreclosure rate of one in every 1,973 housing units per foreclosure filing. In all the number of properties with foreclosure filings in the metro area decreased 32.56 percent from the same period last year. Distressed sales accounted for 9.5 percent of all home sales in the Nashville metro, a 20.4 percent decline from the first quarter of 2018. The number of REO sales and third party foreclosure auctions both showed quarterly declines while the number of short sales rose.
24 think realty housing news report
september 2019 25
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