So cute and with unparalleled amenities! Fully renovated kitchen, bath, and roof in 2007. Separate heated/cooled studio for office or music. Full wood privacy fence, deck, and covered parking. All appliances remain!
Construction has started on Gale Park, a community of single-family Craftsman cottages in Nashville’s trendy 12South neighborhood. There has been an overwhelming interest in this FHA approved new development and 12 homes are already pre-sold to date. Gale Park is an exceptionally green and sustainable community. In addition to its urban location and walkability to nearby commercial districts, these homes have blown-in cellulose insulation which drastically reduces energy bills, radiant barrier roofs, double glazed low-emittance windows, healthy indoor air quality due to low VOC materials and paints, and Energy Star appliances. More on the green features at Gale Park
Single family homes of two and three bedrooms are priced from the mid-200′s to the low 300′s. The initial units should be ready for occupancy by Spring 2011. To get a better feel for the vision of the finished development, take a cruise by the completed West End Station, a smaller twin project located at 36th & Pilcher in Sylvan Heights. The Gale Park model home is now complete and available for viewing by appointment.
MC3 is now FHA approved! If you aren’t familiar with this development, you should be. It is only two blocks up from Five Points in East Nashville – arguably one of the BEST east side locations. The area has a very residential feel as you are surrounded on most sides by historic homes and new construction historic replicas, but only two blocks away from all the retail, restaurants, and commercial businesses of Five Points. Basically close enough to walk in just a couple minutes, but far enough away that you won’t hear the nightlife. The best of both worlds! Of the four floor plans, three are staged as models to help you visualize an urban lifestyle.
What does being FHA approved mean? It means that for only 3.5% down, you can take advantage of historically low interest rates. Have questions? Let us know and we can put you in touch with a lender we trust who can help you figure out an estimated monthly payment.
The FHA has made several changes throughout the last year, but there is another one in the pipeline that is pretty significant. In an effort to shore up the FHA reserve fund kitty, FHA is lowering the Upfront Mortgage Insurance Premium (UFMIP) from 2.25% to 1.25% (good), and increasing the Monthly Mortgage Insurance Premium (MIP) from .0055 to between .008 – .009 (bad). This change will take effect for any loan with a case numbered registered as of September 7th, 2010.
So what does this mean to you the consumer? Well, it’s a little complicated. Ultimately you will probably save a tiny bit of money if you keep your home the “normal” amount of time for 3-5 years. However, your monthly payment will be a tad bit higher than it would be under current guidelines.
You may ask “How am I saving money if my monthly payment is higher?”
Well, it all has to do with that Upfront (UFMIP) fee reduction. You see, when you currently get a government insured loan, there is a large 2.25% fee that is charged as a closing cost and rolled ON TOP of your regular loan balance. So even though you may make a 3.5% down-payment on a $100,000 property, your beginning loan balance will be $98,617 (100k – 3.5% + 2.25%). At the current rate of .0055%, the monthly MIP would be $45 per month for this example.
But starting next month, the same price point will have a different formula. The beginning balance on the loan will be $97,706 (100k – 3.5% + 1.25%) and the monthly MIP will between $66 (at .008%) and $74 (at .009%). I need to do a little more research to find out how lenders determine what your monthly MIP rate will be…
I love the fact that the UFMIP rate has been lowered because I’ve always found it to be a tad excessive, but it’s the premium you pay for having the luxury of such a small down-payment. This lower rate means that you stand to make a little more money when you eventually sell of refinance the home (because your loan payoff amount will have a lower balance). However, I find that first-time buyers are more concerned with the monthly carrying costs of a loan. These FHA changes will ultimately raise the monthly payment by about $23 per month per 100k financed and this is where I take issue. This $23 monthly fee is going to factor into how much monthly payment you can qualify for. Because loan pre-qualifications are based on a percentage of your net income, this change is going to slightly REDUCE the total loan amount you can qualify for. To me, this seems like the wrong way to stimulate the economy.
Right now FHA is guaranteeing roughly one-third of the loans being issued. I’m betting this change is going to significantly reduce that market share. If I were a first time home buyer, I think I might look into conventional loan alternatives. As of printing, many lenders are offering 95% conventional financing. I’ve yet to hear that any of them are upping their monthly MIP from the .0055% (of course these announcements may come in the coming weeks).
I counsel all my buyers to assess their home buying readiness PRIOR to actually viewing homes. I think it is critical to sit down with a loan officer face-to-face at the very beginning of your home search process to make sure you understand:
how much house you can comfortably afford on a monthly basis.
the effect of mortgage insurance, taxes, homeowners insurance and HOA dues on that budget.
the effects of interest rate changes on pre-qualification amounts.
whether or not existing debts on school loans, cars, and credit cards will affect the home loan you qualify for.
the true costs of Closing Costs. It is common today to ask for the seller’s help in paying them, but doing so will severely limit pricing negotiations which will affect value appreciation over time.
If you are thinking of entering the Nashville housing market, I recommend these wonderful local loan officers:
There were 1,745 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents a 21 percent decrease from the 2,214 closings reported for the same period last year.
Year-to-date closings for the Greater Nashville area are 12,768. That is an increase of11.5 percent from the 11,454 closings reported through July 2009.
“The tax credit helped drive nine consecutive months of increased home sales,” said GNAR President Lucy Smith. “Without it, we are beginning to see the new normal of the real estate market. The good news is there were more than 1,700 closings in July and home prices have increased slightly. The increase in prices shows stability and confirms the value of owning real estate. Until the overall economy strengthens and employment numbers increase, it is appropriate to expect some softness in the real estate market both nationally and regionally. Fortunately, Greater Nashville remains better positioned to address these trends compared with many other locations throughout the country.”
A comparison of sales by category for July is:
July 2009
JULY 2010
CLOSINGS
2,214
1,745
Residential
1,861
1,463
Condominium
273
179
Multi-Family
21
25
Farms/Land/Lots
59
78
There were 1,667 sales pending at the end of July, compared with 2,147 pending sales at this time last year. The average number of days on the market for a single-family home was 85 days.
The median residential price for a single-family home during July was $181,000, and for a condominium it was $149,990. This compares with last year’s median residential and condominium prices of $171,100 and $142,146, respectively.
Inventory at the end of July was 24,258, down from 24,592 in July 2009. The current inventory of properties by category, compared to last year, is:
July 2009
JULY 2010
INVENTORY
24,592
24,258
Residential
14,916
15,172
Condominium
2,614
2,417
Multi-Family
412
430
Farms/Land/Lots
6,650
6,239
“Though slightly less than this time last year, inventory has increased over the past several months,” added Smith. “Buyers continue to have a good variety from which to choose in a variety of locations throughout the region. The strong amount of inventory combined with historic low interest rates makes this a very attractive time to consider purchasing a home.”
The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.
We’ve all seen the “Equal Housing Opportunity” logo, but what does “Fair Housing” have to do with your Realtor when you are BUYING a home?
As an Realtor, I’m asked repeatedly about safety and schools in certain Nashville neighborhoods. What most folks don’t realize is that as agents we have to be very careful not to discuss certain aspects of a neighborhood; not to stereotype or “steer” clients toward or away one place or another. The National Association of Realtors® has a strict Code of Ethics that prevents all members from discriminating actions pertaining to Fair Housing. Race, color, religion, sex and national origin are all protected classes. These rules carry over and prevent us from offering our opinions about crime rates, schools, and demographics.
So how do we get around this? Well, here is where the internet comes in very handy. It can be a little weird, but we are supposed to say something like “Well ma’am, I’m sorry, but I can’t provide that information…” To avoid this awkward conversation, I’ve put together a list of what I consider to be the best resources online to aide in your search for the perfect Nashville neighborhood (school, zip code, etc).
Crime Rates
There are tons of websites out there where you can study crime. The Metro Nashville Police Department will be the definitive authority on this . However MNPD recently started turning their data over to CrimeMapping, an organization that creates easy to understand interactive maps that look like this:
Pretty nice looking eh? And it allows this user to search by dates, streets, types of crime, reporting agency, and more. Alternately, you can also research areas via pdf stats on council district or zip code. It should also be noted that local crime rates are at a twenty-year low as reported by multiple agencies. For some fascinating reading on this topic I highly recommend checking out the book Free Range Kids or have a listen at NPR.
Public Schools
Schools are another biggie. While we are not known in Tennessee for a particularly strong schools (and don’t sue me for saying that), I seem to have gotten through the system in tact! Like crime, there are literally hundreds of sites out there that rate and discuss schools. Here are the sites that I find to be most intuitive:
Of course I don’t have the racial makeup, age trends, or income averages of each zip code memorized, but even if I did, I couldn’t tell ya! Discussing demographics is probably the touchiest Fair Housing violation of them all. Luckily the US Census has presented clear and concise info for your consumption. My preference is to search by zip here, but this map is handy too. The Nashville Chamber also offers some interesting trending data over time. Finally City-Data breaks the numbers down into pretty, easy-to-read charts.
Come out and cheer my team – the Zeitlin VuVuZealots!
On Saturday, August 14 (NEW DATE), the Cumberland River Compact and the Tennessee Scenic Rivers Association are hosting the 4th Annual Dragon Boat Races and River Festival at Riverfront Park, in Downtown Nashville. Grab your paddles to raise awareness of these great organizations and promote the health of the Cumberland River. The festival combines the excitement of racing with the beauty and spectacle of Nashville’s diverse culture. In Chinese tradition, the dragon is a symbol of health and prosperity, and dragon boat racing inspires health and fitness among participants as well as spectators.
Last year, 38 teams roared down the Cumberland River. With registration only a short time away, it’s time to get on board. Secure your spot today and save money, too, by registering early. Lear more about the Nashville Dragon Boat Festival.
Borrowing costs on mortgages remained mostly flat in the past week, sticking at or near the previous week’s record lows, reports Freddie Mac. Average interest on 30-year fixed loans were unchanged at 4.57 percent, while the rate on 15-year loans dipped even further to a new bottom of 4.06 percent from 4.07 percent the previous week. Five-year adjustable-rate mortgages bumped up from a low of 3.75 percent the prior week to 3.85 percent on July 15. One-year ARMs, meanwhile, dropped to their lowest level since Freddie Mac began tracking the statistic. The rate settled at 3.74 percent, down a notch from 3.75 percent a week earlier.
Construction has started on Gale Park, a community of single-family Craftsman cottages in Nashville’s trendy 12South neighborhood. There has been an overwhelming interest in this FHA approved new development and 12 homes are already pre-sold to date. Gale Park is an exceptionally green and sustainable community. In addition to its urban location and walkability to nearby commercial districts, these homes have blown-in cellulose insulation which drastically reduces energy bills, radiant barrier roofs, double glazed low-emittance windows, healthy indoor air quality due to low VOC materials and paints, and Energy Star appliances. 
The FHA has made several changes throughout the last year, but there is another one in the pipeline that is pretty significant. In an effort to shore up the FHA reserve fund kitty, FHA is lowering the Upfront Mortgage Insurance Premium (UFMIP) from 2.25% to 1.25% (good), and increasing the Monthly Mortgage Insurance Premium (MIP) from .0055 to between .008 – .009 (bad). This change will take effect for any loan with a case numbered registered as of September 7th, 2010.
There were 1,745 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents a 21 percent decrease from the 2,214 closings reported for the same period last year.
As an Realtor, I’m asked repeatedly about safety and schools in certain Nashville neighborhoods. What most folks don’t realize is that as agents we have to be very careful not to discuss certain aspects of a neighborhood; not to stereotype or “steer” clients toward or away one place or another. The National Association of Realtors® has a strict Code of Ethics that prevents all members from discriminating actions pertaining to Fair Housing. Race, color, religion, sex and national origin are all protected classes. These rules carry over and prevent us from offering our opinions about crime rates, schools, and demographics.
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