Recent developments in the nationwide real estate market have somewhat pointed out that the housing market may be stabilizing after the steep decline that began in 2007. Throughout the country, foreclosures in 2011 decreased 34 percent from 2010. Defaults, repossessions and sales of foreclosed properties were also down. Falling home prices in 2011 were the lowest since the market’s downturn. While foreclosures may be at an all time low, analysts also note that as the foreclosure process becomes more streamlined, additional inventories caught in financial and legal red tape may continue to glut the market.

Home prices in Nashville, Tennessee, showed an increase from last year. A number of factors are leading to the thought that potential buyers could be calling in the first half of 2012. Mortgage rates have reached record lows and this comes at a time when Nashville apartments are continuing to rise in rental rate. The area has experienced a 16 percent increase in rental average in only a year’s time. This increase is a cautionary warning to those who are deciding between continuing to rent and buying that first home.

Home sales for 2011 numbered 20,624; an increase of 1.8 percent from 2010. While a 1.8 percent increase may not seem very large, it is important to note that it is the first time the local market has shown an increase – all without tax credits or other incentives.

Foreclosure rates, which have never been over 3 percent for the Nashville area, are down as well. Again, local factors such as the closure of the Saturn plant had much to do with these figures. The recent announcement of the plant’s reopening is welcomed news for 2012 real estate sales. Better than national average figures on unemployment also indicate healthy home sales in 2012.

At the beginning of 2012, inventory for homes in Nashville had declined by 8 percent and distressed homes entering the market remained at 2 percent. What does this all mean? For buyers, this means there are still homes for sale in Nashville at affordable prices and incredibly low mortgage rates for those who qualify. For sellers, less inventory, more job seekers relocating, means more competitive bidding among buyers.

The good news for sellers is that even though home prices are still dropping, they are not plummeting as they had been previously. As inventories decline, demand among buyers will increase along with home value. The good news for buyers is that low home prices and enticing mortgage rates, could make 2012 a great time to purchase a home.