Low inventories slow home sales in June: Home prices up 60% from 2006, 8% from 2016

Middle Tennessee’s housing market has closed another record-setting quarter, according to data from Greater Nashville Realtors.

Second-quarter closings are 11,155, a 2.8 percent increase from the 10,851 closings reported through the second quarter of 2016 in Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson counties.

This listed home is at 3620 Seasons Drive, and the asking price is $259,000.

Year-to-date closings for the greater Nashville region are up 5.6 percent with 19,493 closings compared to the 18,452 closings reported through midyear 2016.

“The last time our market performed this well in the second quarter was 2006, with 11,046 closings. We’re a few units short of being ahead of midyear 2006, but with half a year left for sales, I suspect we’ll come close to the 2006 record of more than 40,000 annual closings,” Greater Nashville Realtors President Scott Troxel said.

The record-setting quarter ended on a flat note with only a 0.4 percent increase seen in June in the GNR area.

“This is no surprise given the current disparity between supply and demand in the market,” Troxel said. Inventory at the end of June was 8,842, down from 9,865 in June 2016 in GNR’s nine-county region.

Steven Dotson, president of Red Realty and issuer of the monthly Red Report, agreed, explaining low inventories have been impacting prices for a while, but now they are impacting sales.

“If we get an increase in inventory, I think we’ll see an increase in home sales. If we continue to see inventories depleting, we will struggle to maintain past home sales volumes,” Dotson said.

Single-family home sales in Davidson County saw a drop of 10 percent in June while sold prices were up 6 percent to an average of $383,600, according to the Red Report, which tracks single-family home sales in Davidson, Rutherford, Wilson and Williamson counties.

Sales were also down in Rutherford and Williamson counties, but averaged sold prices increased 17 percent to 4 percent to $266,072 and $542,455, respectively.

Fast-growing Wilson County was the lone bright spot with closings increasing 18 percent and the average price jumping 19 percent to $329,429, according to the Red Report.

According to GNR’s data, the median residential price for a single-family home during June was $293,753, and for a condominium it was $199,350 in its nine-county area. Last year’s median residential and condominium prices for June were $260,148 and $186,495, respectively.

In Davidson, Rutherford, Wilson and Williamson counties, the average price for a single family home in the first half of the year is up a staggering 60 percent at $372,587 over 2006 and 8 percent over 2016, according to the Red Report.

“I don’t see any way to keep prices from rising due to the low supply and high demand,” Dotson said.

The trend is set to continue in July with 3,914 properties under contract at the end of June, compared with 3,863 at this time last year.

The average number of days on the market for a single-family home was only 25 days.

Michelle Willard can be contacted at michelle.willard(at)gmail.com.