Downtown Residential Report - Part III

Demographic Profile and Trends
The Nashville Downtown Partnership performed the 2008 Downtown Residential Survey in June, and the findings revealed that 48% of residents work downtown and that the #2 positive influence for continuing to live downtown is because it is Close to Work. These responses underscore the need for growth in the number of downtown residences to complement the growing office market.

- 48% are single and 32% are married
- Well over half of the residents living downtown are ages 43 and under (68%), 27% are Baby Boomers between the ages of 44-61.
- Males and females each make up half of the downtown residential population (50%)

When residents were asked what the top three elements that most positively influence their continued downtown living, the top responses were the urban experience (70%), being close to work (47%), and arts, cultural and sporting events (47%).

Downtown Residential Report - Part II

Historically, Nashville has taken a slow-growth approach, especially in the residential sphere. Developers got a late start in downtown due to lack of residential zoning until the mid 1990’s. The Downtown Living Initiative released in 2003 by the Mayor’s Office, the Nashville Downtown Partnership, and several partnering organizations, served as a catalyst for many developers, prompting them to follow in footsteps of developers in downtowns across the nation. While Nashville was just beginning its residential renaissance, its sister cities were building downtown neighborhoods.

Many of Nashville’s peer cities are several decades ahead in residential development including Memphis, Charlotte, St. Louis, and Indianapolis in numbers of residents living within the downtown environment. At the end of 2008, St. Louis will have over twice the number of downtown residents as Nashville and Memphis will have over four times the number. Indianapolis expects to have 40,000 residents by 2020. In 2001, downtown Nashville had approximately 1,380 residential units. It is estimated that by 2009 there will be 3,686 units. By the end of 2009, the number of residential units will have almost tripled since 2001. Although Nashville’s inventory will grow at a moderate pace over the next few years, it still remains underdeveloped in comparison to other peer cities. While downtown Nashville’s housing unit growth will be 16.02% by 2010, it is trailing Indianapolis (17.75%) and Charlotte (23.64%).

The lag in available downtown housing stock has created a pent-up demand that will not be satisfied with the projects slated to be delivered by 2010. New developments should expect moderate fallout due to changes in lending guidelines. The units that do come back on the market are anticipated to be absorbed due to the continued pent-up demand for downtown housing. The desire and demand to live in downtown Nashville are also attributable to the fact that Nashville continues to be on the national radar through rankings and corporate relocations.

Price Reduction at Bixler Farms

There are some incredible deals available right now at Bixler Farms. A $10,000 price reduction was just made which means units start at $109,900! Bixler is FHA approved and qualifies for down payment assistance up to $19,000! When you factor in the $8000 first-time home buyer tax credit that brings the bottom line down even further. Add it all up and your monthly payment could be as low as $778 including EVERYTHING! That includes taxes, HOA dues, etc.

How do you see Bixler Farms? Simply set up an appointment with the sales agent, Kevin Mann. You can contact him at kevin@villagerealestate.com or at 615-500-2079. He'll be happy to meet you at the property and give you a personal tour.

Sticky Pricing in Good Neighborhoods

National Public Radio had an interesting piece this morning about how pricing in good neighborhoods is holding, and not really being affected by the down economy. We are seeing this every day in Nashville. The fringe markets are being hit a lot harder than the tried and true "established" neighborhoods.

Check it out.

Downtown Residential Report - Part I

Last summer the Nashville Downtown Partnership released a study of the state of the downtown residential real estate market. While this study was done back in July, many of the findings are still relevant. Over the new few days we will share with you exerpts from this report. To read the report in full, visit http://www.nashvilledowntown.com/.

Trends: Moving back to the Cities

The national economic outlook may seem daunting, yet some analysts see downtown across the nation reaping benefits of these lean times. The housing crisis, fuel crisis and heightened food costs are combining forces to change people’s lifestyles and favor urbanization. One of the most notable changes is a move from the suburbs back to the cities.

This change is not a short-term phenomenon, but an emerging trend that will continue in the foreseeable future. Thirty-five million households exist today and another 10 to 12 million will be added over the next 20 years. A conservative outlook is that the top downtown markets will receive 1 to 2 million of these households. Main reasons cited for growth of movement to cities in the future are 1) lower transportation costs, 2) the economy—cities facilitate the flow of ideas, and 3) investment in urban amenities.

During the housing boom, “the average size of a new home boomed.” Larger homes are much more expensive to heat and cool, and new homes are taking the direction of a more compact design. Environmental issues such as climate change appeal to compact developments, and moving forward, significant developments will be required to address sustainable building practices. “What” we build is changing “where” we build. Rehabbing buildings and infill projects in a compact environment will become a more environmentally approved practice.

E-Waste Collection Days

It's Spring Cleaning time. Need to get rid of an old TV, computer, cell phone, microwave, or other electronic item? Metor Public Works is organizing three days this Spring to assist you in properly recylcing these items.

Items that will be accepted at the E-Waste events include:
- small batteries (A, AA, AAA, C, D, 9-volt, button)
- TVs, VCRs, DVD players
- cell phones
- microwave ovens
- stereos and audio
-visual equipment- computers, monitors and printers

Saturday, March 28th
9am-12pm
Location: The MTA Park & Ride Lot at Coley Davis Rd. & Highway 70 South in Bellevue

Saturday, April 4
9am-12pm
Location: Hillsboro High School in Green Hills (Entrance is on Hillmont Drive behind the school)

Saturday, May 23
9am-12pm
Location: Dupont-Hadley Middle School, 1910 Old Hickory Blvd., Old Hickory

Planning for the Future

The Nashville Civic Design Center has teamed up with Nashville Hiking Meetup for this community planning meeting to discuss the Cumberland Riverfront Redevelopment.

Where: Nashville Civic Design Center, 138 2nd Ave N
When: Thursday, March 26, 6pm

This presentation will offer an overview of the Nashville Civic Design Center, The Plan of Nashville and the City's redevelopment plans for the Cumberland Riverfront. For more details on this event, click here.

Urban Outfitters Opens in Nashville Next Week

Urban Outfitters is coming to the Gulch and opens Thursday, March 26th! The new store will be located at 405 12th Ave right by Icon in the Gulch & Velocity in the Gulch. During the grand opening, there will be a special performance by Will Hoge at 6:30pm. And, if you decide to check out the Gulch's latest retailer on opening weekend, bring any canned good to donate to Second Harvest Food Bank.

Africa at the Icon

Africa at the Icon
Thursday, March 19, 7-9pm
600 12th Ave S
www.ElliesRun.org/Icon

$15 Donation Per Person at the door includes drinks and hors d'oeuvres, live music, an African wine tasting tour and free parking.
100% of your donation benefits Ellie's Run for Africa.

Salama Urban Ministries

The Village Fund, the non-profit arm of Village Real Estate, gives to Salama Urban Ministries. Salama provides life-changing programs to Greater Nashville that equip children with skills needed for success in life and to nurture lives of integrity and hope through the foundation of faith. To learn more about this Village Fund Recipient, click here. Interested in making a donation to Salama Urban Ministries through The Village Fund? Let us know.

The Green Revolution

For the Realtors who are following our blog, we encourage you to attend the class Mark will be leading in conjunction with the Downtown Partnership's Downtown Home Tour. It is on Tuesday, March 31 from 9:30am-12:30pm at the Downtown Public Library and is worth 3 hours of TREC credit. Details here.

Bixler Farms

This town home development is just 10 minutes north of downtown on Ellington Pkwy. Bixler Farms features quality construction, upscale finishes and more square footage than most developments at very affordable prices. Prices start at $109,900 so it is the perfect option for a first time homebuyer.

With an FHA loan and 3.5% down your monthly payments would only be $867, including HOA dues & taxes. With a THDA loan and no money down your payment is only $947/month (with approved credit and offer). And the developer is paying closing costs!

Take a Virtual Tour.

March CityLiving Lunch Tour

Join us this Thursday, March 12 from 12-1pm for our next CityLiving Lunch Tour. We'll head over to East Nashville to tour MC3, part of the larger Martin Corner development right near 5 Points. MC3 has flats, carriage houses, and multi-level town homes. Many units also include garages - an unlikely find at most urban developments. RSVP here and we'll be sure to have a free lunch for you after the tour.

$8000 Tax Credit

Congress has passed new legislation which gives first-time homebuyers up to an $8000 tax credit. Here are some highlights:

- Home must be purchased between 1/1/09 and 12/1/09
- First-time homebuyers are defined as those who have not owned a principal residence in the last three years
- The tax credit DOES NOT have to be repaid.

If you've been waiting on the sidelines, we can not stress enough the value of this tax credit and that you should act now! For more information, visit this web site.

What's causing the hesitation? Part 3

Today I'm going to hit on the last of the three main objections buyers seem to have in this market.

Financing Ability: There is no doubt that financing standards have changed. In some cases, it is more difficult to obtain a loan. However, the issue we are seeing is that some buyers hear stories of people not being able to qualify and just assume they can't qualify either. They reach this conclusion without ever speaking to a professional mortgage consultant. After talking to a Realtor (preferably a member of the CityLiving Team) about your interest in purchasing a home, the VERY NEXT step you should take is to speak with a mortgage consultant. We have affiliates at CityLife Lending Group we can personally introduce you to who will give you an honest assessment of your finances, what you can afford to buy, and where you would be comfortable purchasing a home.

If you have fears or uncertainties about purchasing a home in today's market, please don't hesitate to give me a call at 615-500-2079 or send me an email at kevin@villagerealestate.com. I look forward to talking to you soon!

Gulch Certified as Green Neighborhood

From a recent article in the Tennessean...This is great news for our fine city. Nashville continues to evolve and grow into a greener place we can all be proud to call home. The Gulch has great potential, and much of that is already being realized with the completion of Icon, soon completion of Velocity, and continued announcement of unique retail and restaurants moving into the area.

Nashville's Gulch Certified as Green Neighborhood
Neighborhood Wins Rare Honor
By Chas Sisk

The Gulch neighborhood has been certified as an environmentally sound project, city officials and the area's lead developer said Tuesday.

The mixed-use neighborhood between Broadway and the interstate loop last month was awarded silver certification through the U.S. Green Building Council's Leadership in Energy and Environmental Design program. The project was recognized for its proximity to mass transit, friendliness to pedestrian traffic, dense layout, green construction techniques and other factors.

The area was the 13th neighborhood worldwide to achieve LEED certification under the program, which is in its pilot phase. Only three others have been certified at the silver level, the U.S. Green Building Council's second-highest designation.

"I think people will look back at what happened here in the Gulch and look at it as a turning point in our city," Mayor Karl Dean said in a ceremony Tuesday to announce the award. "This is a huge step on our way to be recognized as a green city."

The Gulch's master planner, MarketStreet Enterprises, undertook the effort to get the area LEED certified and paid the $15,000 application fee.

"We think the Gulch can become a model community," said Jay Turner, MarketStreet's managing director.

Green Living Seminar at Village Tonight

The next seminar in Village's ongoing series is this Wednesday, March 4 from 5-7pm. Please join us as we discuss Green Living: Why Now is the Time & What it Means to You. Randy Chastain of Parkside Homes and green building enthusiast will join Mark Deutschmann in this panel discussion. Wine and h'ors d'oeuvres reception from 5-6pm and discussion with Q&A from 6-7pm at Village Real Estate's main office at 2206 21st Ave S. Questions about the seminar? Contact us.

What's causing the hesitation? Part 2

It's Kevin Mann again. Today I'm going to touch on another one of the main objections that seem to be coming up lately for buyers we are working with: No Sense of Urgency.

No Sense of Urgency: Buyers in general (and not just real estate) are listening to the news, hearing about price drops, and are waiting to time the bottom of the market in order to get the best deal. This strategy is good in theory, however the giant flaw is that most buyers wait too long and miss the bottom. They react to the market changing along with everyone else, which creates increased competition for the best properties, thereby driving up prices again.

My feeling is that the bottom is here now. In recent blog posts you've seen us talk about increased traffic on our websites, in sales centers, and in open houses. This is proof the savvy buyers are taking advantage of the bottom and moving. We've seen more multiple offer situations in the last two months than in all of the 2nd half of 2008.

What's causing the hesitation? Part 1

Kevin Mann, here. I was having a conversation with Zach Goodyear today about what is causing hesitation among some buyers in the marketplace right now. We debated a few ideas and polled the rest of the CityLiving Team to find out what they were seeing and the main objections that seem to come up are:

1. Unrealistic expectations of how much they can negotiate on price
2. A lack of a sense of urgency
3. Financing ability

These are always factors that we see in the buying population, but they definitely increase during uncertain times. I wanted to address these and talk about my opinions on each. I'll post on these over the next couple days. First up, unrealistic price expectations.

Unrealistic Price Expectations: Let me first say that there are some deals to be had out there. Some sellers are in a tough place and need to get out of their house quickly, and are willing to sell it for a bargain. They are even willing to lose money if that means saving them from possible foreclosure, allowing them to move into a new home, or any number of other reasons. However, these deals are a small percentage of the current inventory and overall houses are still holding their values quite well.

I was doing some research this weekend and found that in houses under $500,000 in Area 2 (Belmont, 12South, West End, Vandy, Green Hills, etc.), Area 3 (Germantown), and Area 6 (East Nashville), the list price to sale price ratio over the last 6 months was at 95% and above. This means that the average amount homes are selling for is only 5% less than the list price. For example, on a $250,000 house, that would only be a $12,500 reduction down to $237,500.