Posh Green Hills Neighborhood Over Priced?

The World famous Blue Bird Cafe in Green Hills, Nashville

The World famous Blue Bird Cafe in Green Hills, Nashville

 

The popular and trendy Green Hills neighborhood of Nashville is begining to show the effects of the 2009 Recession.  Home sales in the chic areas around the BlueBird Cafe and The Mall at Green Hills have seen sales slow and inventories of unsold homes rise.

Green Hills homes have seen consistant increases in values for many years, now those home values may be in for an adjustment.

NashvilleRealEstateTalk.com’s own Gary Rabideau crunched the numbers for us and this was what he found.

Green Hills Absorption Rate

Green Hills Home Sales for 2009 show a definite downturn starting at about $400,000.  We consider inventories of more than 6 months to be a Buyer’s Market.  In most price ranges, Green Hills homes show 11, 13 and on up to as much as 2-4 years of inventory for sale.

The only Bright spots in the Green Hills Real Estate Market would Homes priced between $200,000 and $300,000 where we found just 4 homes available but only 8 had sold in the last 12 months. That means a 6 month supply.  Certainly not a sellers market, but relatively neutral.

Likewise in the $300,000 to $400,000 where an average month has 5 sales there are 25 Homes available , a 5 month supply.  Home sellers in Green Hills who have priced there homes in those two price areas are in good shape assuming their homes are attractively staged.

However, Home sellers in the higher price ranges are swimming upstream and have two strikes against them. First the large inventories of homes for sale in Green Hills.  Secondly, these home sellers need to be aware that mortgage rates in the $400,000 and above market comes with interest rates as high as 8% ( Ouch!).

Conclusions

Home sellers in Green Hills will need to be realistic in their pricing. Home buyers looking at the Green Hills neighborhood may want to sharpen their pencils and do some real negotiating armed with this knowledge.

Absortion Rates for Green Hills Neighborhood of Nashville Tennessee

2009 Absortion Rates for Green Hills Neighborhood of Nashville Tennessee