2012 OUTLOOK: Sales up, inventory down, confidence back

Brentwood's quality of life -- its schools, parks and protective zoning -- continue to keep Brentwood a desireable place to live.

Optimism returns to Brentwood RE market
By AMY STUMPFL
For Brentwood Home Page

Local real estate professionals are feeling rather optimistic as we head into 2012. And if recent figures are any indication, Williamson County may have a bit more to celebrate than other markets as we welcome the New Year.

“Brentwood home sales increased five percent in November over the previous year, and average and median prices climbed 12.3 percent and 10.4 percent, respectively,” says Amy B. Wyatt, Realtor with Worth Properties, LLC. “I think that what we are experiencing here in Brentwood is a steadily recovering real estate market, with increasing sales and decreasing inventory.

Another positive indicator is home starts. The city had 238 building permits pulled for new homes in 2011. While that number is not back to the boon years of five or six years ago, said City Manager Mike Walker, it is much closer to what is considered normal.

In comparison, the city had only 68 housing starts in 2009 and 140 last year. The number of available platted lots is also down, with 634 vacant lots now compared with 753 at the end of 2010.

“Brentwood home sales continue to show strength relative to the rest of the market, due to its outstanding school system and a great quality of life,” she adds. “I have personally seen a significant increase in relocation to the area, as businesses continue to expand and move here because of our area’s attractiveness.”

A third-generation Realtor and lifelong Brentwood resident, Andy Beasley is well-versed in local trends.

“As I enter my 42nd year in the real estate business here, one thing I can say is that Brentwood always seems to endure an economic downturn better than other markets,” says Beasley, owner of Brentview Realty. “Year in and year out, we tend to do a little better than most, thanks to our excellent schools, recreational facilities, and the fact that our zoning is protective enough to keep investments sound and solid.”

Beasley agrees that overall figures are positive, noting that local buyers are gaining confidence.

“We’re expecting great things in 2012, despite some distractions from the political arena,” he says. “People who have been cautiously watching the economy are going ahead with plans to move. That apprehension that we saw a year or two ago is not there now. More people are out looking – both online and physically.”

Indeed, today’s buyers are doing their homework. They also are demanding more for their money.

“As I enter my 42nd year in the real estate business here, one thing I can say is that Brentwood always seems to endure an economic downturn better than other markets.” Andy Beasley Brentview Realty

“It’s still a buyer’s market, and those buyers have become extremely savvy,” Beasley says. “There’s a real sense of entitlement when it comes to value – buyers expect the property to be completely updated with granite, hardwood floors, stainless steel and such. If the seller is not willing to provide that value, buyers know they can go down the street and find someone else who is.”

Still, local inventory appears to be shrinking – another positive indicator, says Allison King, government affairs and communications director for the Williamson County Association of Realtors.

“Prices were up in October and November 2011, and we expect the same for December,” King says. “We’re seeing a good upward trend. The number of closings is up, and the inventory is declining – a good sign that we’re in recovery. Another indicator pointing to a strong 2012 is the number of days on the market, which has been dropping steadily.”

King expects to see more first-time buyers entering the residential market in 2012.

“Rents are up, but we expect interest rates to stay at or near historic lows,” King says. “So look for first-time homebuyers to be a big part of the buyer pool this year.”

At the same time, Beasley expects to see more baby boomers downsizing.

“With more boomers nearing retirement, they’re looking to scale things down,” he says. “They’re looking for more convenience and less maintenance, but they still want quality – and they’re willing to pay for all the extras. This is one of the most frequent conversations I have these days, and I think we’ll see more of that in the coming year.

“Overall, things are definitely looking up,” he adds. “I’m feeling optimistic as we head into 2012.”