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Condo Prices Decline, Experts Say It Is Not A Sign Of A Problem

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Posted at 6:45 PM, Aug 11, 2015
and last updated 2015-09-07 16:46:07-04

NASHVILLE, Tenn. - The latest numbers from the Greater Nashville Association of Realtors showed a drop in the median sale price of condominiums in the region.

In July of 2015 the median sale price of a condo in the Nashville region was $161,500. A year ago, during the same month, that number was $170,000.

According to experts, the number does not indicate a decline in the condo market.

"I really don't think that we've seen depreciation, I think we've just seen more of a variety of properties for sale, and lower price properties come onto the market, which is actually a good thing," according to Cindy Stanton, President of GNAR.

The statistical region for the association encompasses Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson, and Wilson Counties. 

Stanton said higher sales, at lower price points, in the counties surrounding Nashville are most likely the reason for the dip in the median price. The average for condos only sold in Davidson County has held steady at $168,000.

In 2014 there were 352 condos closings in the region. That number jumped up to 435 in 2015.  

Real estate advisor Shane Tallent, with Parks In The Gulch, said it is tough to find a condo for sale in the downtown core of Nashville.

"We're just blowing through them, because we have buyers lined up, and no where to put them. So when something hits the market, and it's priced right, it's sold," Tallent explained.

A check of an on-line listing service showed just how few condos were available for purchase in that area.

"Six units for sale within one mile of Music City Center, and I promise you there's more than six buyers right now.," said Tallent.

It is a matter of supply and demand, according to Tallent. Developers are still hesitant to invest in building condo units, instead of apartments.

"In my opinion, the condo market is stronger than ever, and it would be even stronger if we had more units to sell," Tallent said.

The 1212 building is the first condo high-rise built in Nashville in more than five years. Its high-end units are nearly sold out. There are no other major condo projects in the pipeline.