HummerHomes Team Now Has Corporate Housing

The HummerHomes Team is proud to release our new Nashville Corporate Housing program that features brand new condos in urban core of Nashville. In 2008, we will release 8 condos in the Encore, 6 condos in the Icon, 4 condos in the Viridian, 4 flats in District Lofts, and 4 townhomes in Madison Square for corporate lease. In 2009, we will release 10 condos in the Rhythm and 5 townhomes in West End Station. All units will be brand new construction and fully furnished by Cort furniture, the industry leader in Nashville.

Pre-leasing will being in January 2008, for more information on floor plans and rates, please contact Grant Hammond at 615-945-7123 or via email Grant@HummerHomes.com

Nashville Mortgage Rates Bump Up

Freddie Mac reports that 30-year fixed mortgages averaged 6.11% on Friday, an increase from the week-ago rate of 5.96%. Until this past week, interest on 30-year loans had either been holding steady or declining each week since mid-October. The increase to 6.11% prompted Freddie Mac chief economist Frank Nothaft to remark: "The national housing segment of the economy still has a way to go before bottoming out."

Rates on 15-year fixed mortgages, meanwhile, climbed to 5.78% from 5.65% a week earlier; while five-year adjustable-rate mortgages jumped to 5.89% from 5.75%, and one-year ARMs bumped up to 5.50% from 5.46%. The rate jump was a true surprise as the Fed met earlier this week and lowered prime 0.25%, but Wall street hoped for a full half point drop causing the market the fall over 250 points. The HummerHomes Team predicts that Nashville mortgage rates will fall consistently over the next 3-4 months and the 30-year fixed rate may be as low as 5.75% by early March.

Even with this small mortgage set back, the Nashville real estate market continues to sell more homes than it ever has in history. The downtown condo market has really spurred our market as there are more than 2,000 units delivering in 2008, over 90% of which are already sold! Now is a fantastic time to own real estate in Nashville, our market has appreciated in 2007, condos are flying off the shelf, and you can buy so much for your money!

The Encore in downtown Nashville, TN

I was driving through downtown Nashville today and happened to notice that the Encore condo tower was shimmering in the late afternoon sun. This project will be complete in mid 2008 and will set a new standard in downtown Nashville living! On another great note, the Nashville Predators extended their lease in the Sommet Center ensuring Encore owners will continue to enjoy NHL games for years to come.

This project is currently 85% sold out, but our clients bought more than 20 premium units and some would be willing to sell to you at less than current market rate in return for a simultaneous closing in 2008! Email Grant@HummerHomes.com to find out more about these opportunities.

Nashville Mortgage Rates Hit Two-Year Low!

The 30-year fixed mortgage rate fell to a more than two-year low in the week ended Nov. 29, slipping to 6.1% from 6.2% the prior week. Freddie Mac further reported that the 15-year fixed loan rate fell to 5.73% from 5.83% over that same time span, and that interest on five-year adjustable-rate mortgages dipped to 5.86% from 5.88%. Meanwhile, the one-year ARM bumped up to 5.43% from 5.42%. Freddie Mac chief economist Frank Nothaft attributed the decline in Nashville mortgage rates to worries about an economic downturn tied to the weak housing and credit markets, which has pushed down interest rates on U.S. Treasuries.

If you are considering purchasing an investment property in Nashville, now is the time to get off the fence! With the NAR predicting 5.8% to 12.2% appreciation in 2008, mortgage rates at 2005 levels, and the ability to shake nervous buyers down, there has not been a better time in more than 22 months. In addition to residential investments, we offer many "off market" commercial real estate opportunities in Nashville.

2008 Conforming Loan Limit Remains $417,000

Director James B. Lockhart of the Office of Federal Housing Enterprise Oversight announced that the maximum 2008 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac (the Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the U.S. (Higher limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands as well as to properties with more than one living unit).

"While the house price survey data used in determining the conforming loan limit show a decline over the past year, as previously announced and consistent with the proposed new conforming loan limit guidance, the level will remain at $417,000 for the third straight year," said Lockhart.

We had hoped to see a slight rise in the conforming loan limit as the property prices in Nashville continue to climb, but it is still positive news that the limits did not drop. View estate homes in Nashville, you will be pleasantly surprised by the size, price, and level of craftsmanship!

Nashville Mortgage Rates Drop, Again

Last week, Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.20% with an average 0.5 point for the week ending November 21, 2007, down from the prior week when it averaged 6.24%. Last year at this time, the 30-year fixed-rate Nashville mortgages averaged 6.18%. The 30-year FRM has not been lower since the week ending May 10, 2007, when it averaged 6.15%. The 15-year FRM averaged 5.83% with an average 0.5 point, down from the previous week when it averaged 5.88%. A year ago, the 15-year FRM averaged 5.91%. The 15-year FRM has not been lower since the week ending February 2, 2006, when it averaged 5.81%.

"Both the producer price index and the consumer price index remained contained in October while industrial production fell," said Frank Nothaft, Freddie Mac vice president and chief economist. "This allowed interest rates for the 30-year FRM to decline to the lowest levels since early May 2007 and the 15-year FRM to fall to a level not experienced since early last year."

The current condition of the Nashville real estate market really lends itself to those who are willing to take small risks. We have been able to find several sellers who are nervous enough to sell way below the true market value allowing our clients to make a handsome profit. Don't forget that mortgage rates are very low right now, in fact, they are quickly heading down to 2005 levels! We are currently offering special rates for 30 year mortgages in The Viridian and The Encore in downtown Nashville.

The Media Vs. The Real Estate Market

With all of the doom and gloom on the nightly news, this question has to be asked: Is the news media creating an artificially bad real estate market? Is the news media at least responsible for making a bad situation worse? I believe that the answer has to be a resounding yes. Let me start by clarifying, the real estate market in Nashville is still appreciating and homes are not languishing on the market for years at a time. The story in Nashville is quite the opposite of most of the stories you hear across the United States, but our market has slowed more than what the conditions warrant. For example, our unemployment rate is less than 5% and has not risen in more than 28 months whereas the national unemployment rate is beginning to climb. Our average household income index has also risen faster than area homes prices.

It would be rather unrealistic to gloat that all of Nashville's indicators are making a positive move, there have been a few traditionally bad signs for the market. The foreclosure rates and numbers are up over last year, but I could make the argument that the people who are losing their homes were overextended to begin with and would have eventually defaulted. It may actually be healthy to trim the uncredited "fat" from the Nashville market and allow currently qualified buyers acquire those properties. Obviously, the media simply talking about a bad national real estate market will not cause foreclosure rates to rise, but the doom and gloom will affect qualified buyers and their willingness to jump into an ownership position.

Perhaps the best economic indicator for Nashville is that rental rates have risen across the board. Single family home rentals, downtown condo rentals, suburban apartment rentals, Germantown townhouses, you name it, they are up on average 8% over last year. What does this mean? It means that there are plenty of people in Nashville who can afford and want to live in Nashville and that housing demand is still high. It also probably means that many people who are qualified and can afford to buy a home are simply choosing not to do so. I would make the argument that the national media has a lot to do with that decision.

Another great indicator for the Nashville market is that the commercial real estate market is one of the strongest in the United States. At the writing of this post most national publications rank Nashville in the top 5. In fact, the Hendersonville commercial real estate and Cool Springs commercial real estate markets are two of the strongest sub-markets in the history of middle Tennessee.

Of course there are many, many other factors that contribute to the overall market's health, but consider these following accolades: Franklin was the 2006 "Best small town in America", Smyrna is "one of the best places to retire in America in 2007", Nashville is "the second best major city to relocate your business in 2007", and the list goes on and on.

Nashville Mortgage Rates Drop!

During the week ended Oct. 25, the 30-year fixed mortgage rate fell to 6.33% from 6.40% the prior week, according to Freddie Mac. Interest on 15-year fixed loans dropped to 5.99% from 6.08% over the same period. Meanwhile, interest on one-year adjustable-rate mortgages slipped to 5.66% from 5.76%; and the five-year hybrid ARM registered a decline to 6.03% from 6.11%. Freddie Mac chief economist Frank Nothaft attributed the lower rates to concerns about an economic slowdown and uncertainty about the impact of the housing downturn on the economy.

We still believe that there will be a quarter point basis drop coming within the next week or so. Look for rates to continue dropping all the way through the presidential election in 2008. Be sure to check out our Nashville commercial property if you are considering investing in our area. Our commercial brokerage is second to only our residential brokerage!

Mortgage Rates Remain Flat

Freddie Mac says mortgage rates barely budged last week due to conflicting economic reports, with robust retail sales in September offset by a disappointing outcome in consumer confidence this month. The 30-year fixed mortgage rate held steady at 6.31%, while interest on 15-year fixed loans rose to 6.08% from 6.06%. The 1 year adjustable mortgage rate climbed to 5.76% from 5.73%, and the five-year ARM slipped to 6.11% from 6.12%.

With the impending rate drops from the Fed, it appears that we might see rates dip in the upper 5% range by the beginning of the year. While the Nashville new construction market seems to be slipping, Nashville rental rates remain very high allowing you to purchase as an investment property for the next few years.

Nashville Market Update

The Nashville real estate market has certainly slowed with the rest of the country, but we still have not seen the “sell off” other areas have seen. An article was published about two weeks ago now that stated our sales volume has dropped almost 25% in 12 months, but our prices have increased by 3%. This has created a buyer’s market here and we are now starting to see some pretty good deals available on select houses. There are still a lot of people out there who have their home on the market just to see if they can still cash in from what happened a year ago, but those homes will eventually come off the market. The trick is identifying which homes are really need to sell and which are just dreaming of a sale.

Mortgage Rates Edge Upward

Freddie Mac says the 30-year fixed mortgage rate edged up to 6.40% from 6.37% over the past week. The 15-year fixed mortgage rate climbed to 6.06% from 6.03%. Meanwhile, interest on one-year adjustable loans jumped to 5.73% from 5.58%; and the five-year ARM bumped up to 6.12% from 6.11%.

Nashville Mortgage Rates Decrease Slightly

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 6.37% during the week ended Oct. 4 from 6.42% the prior week. Interest on 15-year fixed rate mortgages fell to 6.03% from 6.09% over the same time span. Meanwhile, the one-year adjustable mortgage rate slipped to 5.58% from 5.6%, and the five-year hybrid adjustable rate declined to 6.11% from 6.15%. This marks the first decrease in Nashville mortgage rates in three weeks and is not expected to be the last decrease this month.

Mortgage Rates Creep Back Up

After hitting a four-month low of 6.31% two weeks ago, long-term mortgage rates continue to climb. Freddie Mac reports that interest on 30-year fixed loans spiked up to 6.42% last week from 6.34% a week ago, while 15-year fixed mortgages moved up to 6.09% from 5.98%. Contrary to the upward shift in long-term rates, initial interest on one- and five-year adjustable-rate mortgages dipped for the fourth week in a row, according to Freddie Mac. The Mortgage Bankers Association, meanwhile, says that ARMs continue to lose market share and currently are at their lowest level in about four and a half years!

Nashville Mortgage Rates Remain Low

Freddie Mac reported a small jump in the 30-year fixed mortgage rate to 6.34% on Friday from 6.31% a week earlier, which is still less than the year-earlier rate of 6.40%. Meanwhile, the one-year adjustable mortgage rate dropped slightly to 5.65% from 5.66% over the same period. Freddie Mac chief economist Frank Nothaft expects the Federal Reserve's decision to cut the federal-funds rate to 4.75% to "dissipate some of the volatility in short-term interest rates."

The Nashville HummerHomes Team agrees and we further believe that the strong Nashville economy will continue to buck the national trends. Our home values continue to rise slightly and lenders continue to process loans for our financially resilient city.

Mortgage Rates Fairly Stable, Still Low

Freddie Mac reports a slight gain in the 30-year fixed mortgage rate to 6.46% during the week ended Sept. 6 from 6.45% the prior week. The 15-year fixed mortgage rate climbed to 6.15% from 6.12% over the same time span. Meanwhile, the five-year hybrid adjustable rate dropped to 6.32% from 6.35%, and the one-year adjustable rate dipped to 5.74% from 5.84%. Freddie Mac chief economist Frank Nothaft says mortgage rates barely budged because "the most recent economic news showed smaller increases than had been expected." This stabilized financial market has helped the Nashville real estate market turn out of the correction phase and back into a larger appreciating market.

It appears that the credit market will take another couple of months to work itself out. The Fed is expected to cut the Prime Rate by 0.25 basis points at their next meeting and most economists agree that a second 0.25 cut will take place before the end of 2007. If you have good credit, now is the time to buy that dream home in Nashville. You can really work nervous sellers over and secure a phenomenal deal!

Nashville Baseball Stadium Con't

It appears that the old Nashville thermal plant site is no longer going to be a potential site for a downtown Nashville baseball stadium. The site is going to be sold to the highest bidder and that certainly is not going to be the Nashville Sounds or their development partner. It appears more likely to be sold to a group backed by Tower Investments headquartered in Northern California. I would imagine that Tower would plan to use the acreage to build a mixed use residential, retail, and commercial center as that is their standard formula. Don’t get me wrong, Tower will build an exceptional riverfront development, but no baseball stadium and that is disappointing.

So what is the next best location in downtown? The clear answer is in the Market District just north of the Capital. The best potential site in the Market District is between Second and Fourth Avenues and between Stockyard and Jackson Street. This site is within walking distance from the downtown core, 2 blocks from the Cumberland River, 3 blocks from the Farmer’s Market, and only 5 blocks from Historic Germantown:

The Market District is currently undergoing a transformation from a light industrial and warehousing district into a mix-use residential, retail, and commercial district. It is defined by the area between Eighth Avenue North and the Cumberland River and between Jefferson Street down to James Robertson Parkway. Located within this area is the Nashville Farmer’s Market, the Bicentennial Capitol Mall, the famous Stockyard Restaurant, and the future home of the Museum of African American Music Art & Culture. Residential developments include the Riverfront Condos, District Lofts, and Harrison Square.

What could the Market District look like with a baseball stadium? If I had my way, it would look a little like Wrigleyville in Chicago (on a smaller scale, of course). Can't you image sitting in the upper decks watching the Sounds play with the Nashville skyline just above the outfield wall?

The baseball stadium should be built with home plate at the corner of Second Avenue and Jackson Street or at the corner of Fourth Avenue and Jackson Street in order to maximize the view for the fans. Third Avenue should cease to go through the site and all traffic should be routed counter-clockwise around the stadium in a one-way roundabout format. Jackson, Stockyard, and Harrison Streets will all need to be widened in order to accommodate the heavier traffic flow. Parking can be handled by the existing parking at Bicentennial Mall and the government surface lot.

It is our firm belief that construction of an urban baseball stadium will allow the Market District, Germantown, and Salemtown to full revitalize within 5 years of completion. The Nashville real estate market will boom in this area and commercial construction will soon follow making this a true Wrigley-like area. If the city gets smart, they will contact the Civic Design Center, the Downtown Partnership, and Metro Planning Department to initiate a master plan for the Market District to insure the creation of green space and urban landscape.

Proposed Nashville Convention Center Con't

After posting my first few comments and observations about the proposed Nashville convention center I received quite a few calls. In fact, several of my more conservative friends called me and bashed my comments about the need for a new convention center. My first reaction was astonishment, but my second reaction was to research the potential effects of the convention center even further. Here is what I found out: I found that I may have underestimated our need for a convention center in Downtown Nashville. In fact, we might should consider building a center that could attract over 90% of all convention sizes instead of the 70% the plans currently service.

Modeling the effects of urban convention centers in other cities, it stands to reason that Nashville can compete with the 5 largest convention cities in the United States: Chicago, New Orleans, Orlando, Las Vegas, and Atlanta. If you look at these 5 cities, each has something very unique to offer except for Atlanta. Chicago has lake front, New Orleans has the French Quarter, Orlando has Disney, and Las Vegas has casinos. Nashville has music and a lot of it. I think we can all agree that all of these cities receive an exceptional number of tourists and that a downtown convention center will only help our under performing tourism market.

So what about the locations of convention centers in other cities? Well, I called quite a few residents and business leaders in the 40 largest cities and most would give their left arms in order to build a convention center right in the middle of their downtown. Let’s think about the opportunity Nashville currently has that almost no other city in the United States does. We can put a brand new, first-class convention center smack in the middle of downtown AND connect it to the Country Music Hall of Fame AND the downtown arena that hosts the NHL and many large concerts/event? How is there any question as to whether or not to build?!? Even if the construction where to cost taxpayers a small fortune (which it will not), we should still build it in order to revitalize and build our downtown into a vibrant and safe place for residents. Can’t you imagine thousands of tourists strolling the streets of downtown throwing tons of out of state cash into our economy? It’s like Christmas all year round!

Now imagine what a downtown convention center would mean for the Nashville real estate market. Current values for condos, lofts, and homes would absolutely skyrocket as more and more retail and store space was built. There would be no limit to the heights of the downtown Nashville commercial real estate market. National retailers like Nordstroms and Saks 5th Ave would be beating down the doors of the old convention center to grab that prime space. New restaurants, grocery stores, pharmacies, doctor offices, we would have it all. We would also have a much better shot at convincing our elected leaders that we should build the baseball stadium in the Market District.

The Current Real Estate Climate in Nashville

Attention residential buyers, with more than 20,000 properties on the market, we are in the largest buyer’s market since the mid-nineties in Middle Tennessee! The Fed just bailed out lenders by lowering their borrowing rate this week so now there are plenty of low interest fixed rate mortgages available. Add these two ingredients together and you have the perfect recipe for purchasing Nashville real estate for record prices. This is the time to go after that dream home you have always wanted or to purchase that downtown Nashville condo to use for weekends and football games. Recently, we have been involved in several bulk investor purchases in and around town as our Nashville investment property base has grown to include many West Coast and East Coast individuals, groups, and institutions.

Still don’t think that you can qualify for the right home loan? Simply put, there are literally hundreds of loan products out there and we can help you sort through the programs. You should contact Melissa Boudreaux with Countrywide Home Loans in Cool Springs – Melissa is the #1 source for Nashville homes loans and mortgages. She will walk you through the rates, payments, discounts, and show you how you will save money on a fixed rate mortgage without having to worry about mortgage scams, unstable subprime lenders, or balloon payments.

What about Nashville commercial property buyers? Great news for you, Nashville is currently ranked #6 in the United States for purchase price, rates of return, and ability to sell for a profit within the next 5 years. Nashville is growing at a phenomenal rate and there is a decided lack of commercial, retail, and industrial property in downtown. Currently owners are receiving $25-30 a foot for prime retail space and $20-25 a foot for second tier space. There is hardly any availability and there appears to be no end to the market’s appetite. Our commercial property managers and commercial real estate brokers are a large reason for our success in Nashville commercial property management.

So what are your next few steps? You need to get online and start searching for homes in Nashville. We offer a free MLS search option that allows you to establish auto searches, save favorite properties or even ask us for additional info with the click of a button. We look forward to serving all of your real estate needs!

30-Year Rates Rise After 3 Weeks of Retreat

A jump in interest rates has ended a three-week run in lower borrowing costs, reports Freddie Mac. According to the mortgage finance giant, the average interest on 30-year fixed loans rose to 6.62% this week from 6.59% last week. The rate for the 15-year fixed Nashville mortgages that are common in refinances, meanwhile, floated up to 6.30% from 6.25% over the one-week period. Also on the rise were five-year adjustable-rate mortgages, which nudged up to 6.35% from 6.33%, and one-year ARMs, which bumped up to 5.67% from 5.65%.

With less and less buyers in the real estate market, now is the time to make a move while mortgage rates are still hovering around historic lows. Sellers are nervous, the press is bad, and our market is still positively appreciating. If you are relocating to Nashville, TN, we would love to hear from you!

The New Nashville Convention Center

The Nashville convention center just celebrated its 20th birthday and with that it is time to look towards the future and the plans for the new downtown convention center. Before we do that I want to tell you a few things that you may not know about the current convention center. The convention center opened its doors on January 31st, 1987, but that was 10 years after the Nashville Hotel/Motel Association requested the Tourism Commission to recommend building the darn thing to the Metropolitan Council. A three year study ensued which did not yield any direct results until a Chattanooga developer offered to build a hotel in conjunction with the convention center. Two years later a plan was finally approved and a year after that construction began.

Since it’s prolonged beginning, the convention center has truly helped refined downtown Nashville, more than you might realize. In fact, in the last 10 years alone, the convention center has contributed more than $910 million dollars to the downtown economy and served more than 3.5 million people. How about them apples?!? Did you also know that you never paid a dime to have it here? That’s right, In May 2006, the original 20-year construction bonds were paid in full from the hotel tax collections that allowed construction to begin. The citizens of Nashville never had to contribute a penny to the operation or debt service for the facility.

BUT, what else don’t you know? Did you know that our convention center is currently ranked 115th in the nation or that we have lost an estimated 240 conventions since 1999 due to our size limitations? What could that lost business have meant for our city? Well, I’ll tell you:

1) The new convention center will create an estimated 36,000 jobs
2) It will produce $10 million each year for Metro Schools
3) It will generate $65 million in new state and local tax revenues per year
4) It will generate $700 million in direct visitor spending per year
5) There will be no sales or property tax increase to pay for construction

So what does that tell us about the future of our current convention center?

It says to me that it’s time to build a bigger and better facility that will perform as well or better than our last convention center and the economic studies have come to the same conclusion. In February 2006, the Music City Center Coalition unanimously recommended construction of a 1.2 million square foot state-of-the-art facility with 375,000 square feet of exhibition space and two ballrooms. It will position Nashville to attract more than 70% of the meetings market. Estimated land acquisition and construction cost was $455 million, with a return on investment of $700 million per year. However, the longer we wait to built it, the more it will cost and you know that eventually we will have to build it.

But wait, what kind of facility do we really want? This is the question that we all need to consider at this point. The convention center will be built, it’s just a matter of how big and what else comes with the package. Here are my suggestions: We need retail, retail, and more retail for our current and future downtown residents. We need a proper grocery store, drug store, and other essential city services in order to truly become inhabitants of downtown and to be able to ditch our cars for weeks at a time. We need more downtown Nashville commercial real estate! Why wouldn’t the developers make the convention center larger, the space is there in Sobro, and add on several street front retail spaces to sell or lease to national, regional, and local retailers? There will be plenty of residents in the downtown core by 2010 and in-turn, plenty of demand for commercial space.

So my next question is…why stop there? Why can’t we master plan the entire several block radius into a more pedestrian friendly outdoor centric space that includes a few parks, fountains, reflecting pools and other points of interest. Why can’t we redesign the traffic flow to allow for perimeter parking like the national parks in Washington DC? The answer is we can. We can if the Civic Design Center, the Downtown Partnership, and the Music City Center Coalition get together with the Metro Planning department and put some ink on paper. Now is the time to redefine the Sobro and Riverfront areas. Now is the time to plan for a downtown Nashville baseball stadium. Now is the time for Nashville to ask its citizens for their input. Now is the time for Nashville.

And finally, everyone listens to my rant and then asks, “So what happens to the old convention center? Do you want it sitting there empty? Won’t this be a huge waste of money and time?” These are my favorite questions and I usually ask this question back: If you were a big developer, like a national guy, and you saw an entire city block come available in the downtown core of the 26th largest city in the United States, would you be interested? The answer is always “yes”. It does not matter what they build (office building, condo tower, indoor mall), the fact remains, they will build.