Lack of supply continues to push up home prices in Middle Tennessee
Houses continued to sell in Middle Tennessee in July despite economic pressures pushing up prices and the nagging lack of quality inventory, according to data released in early August.
“Median home price is up again compared to the same month last year. As supply and demand continue to be at odds, prices can be expected to continue to rise,” Greater Nashville Realtors President Scott Troxel said, calling affordability “a serious issue.”
But there may be a slowing in the market with the median price down from June, according to GNR’s data, which tracks single-family residential, condominiums, multi-family and lot sales in Davidson, Cheatham, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson counties.
The median residential price for a single-family home during July was $288,243. In June, the median residential price for a single-family home was $293,753. Both June still outpaced last year’s median residential price of $267,000.
“It’s far too soon to tell if the drop in median price from June to July is evidence of a trend,” Troxel said. “It’s very likely there were proportionally more ‘starter’ homes sold in July than the number of starter homes sold in June. My experience is that different sectors of the market are more engaged and less-engaged at different times of the year.”
Steven Dotson, president of Red Realty and issuer of The Red Report, said he doesn’t think it’s a trend or sells of starter homes.
“We all see new homes constructed, but they just can’t keep the pace and builders can’t build the lower price ranges with the profits they need to survive so the starter home prices have priced many buyers out of the market as prices continue to rise,” he said.
“We continue to feel that sales volumes will be determined by inventory levels and affordability more than buyer demand,” Dotson said. “The buyers are there. There just isn’t the inventory they want or can afford.”
Overall, homes are selling at a fast clip.
There were 3,872 real estate closings reported for the month of July, according to figures provided by Greater Nashville Realtors. This represents an increase of 4.5 percent over the 3,705 closings reported for July 2016.
Year-to-date closings totaled 23,365, which is a 5.5 percent increase compared to the 22,157 closings reported through July 2016.
According to The Red Report, closed prices for single-family homes Davidson County increased 13 percent to $378,232.
Active inventory at the end of July was 9,151, down from 10,133 in 2016 in the GNR region. In Davidson, Rutherford, Wilson and Williamson counties total inventories for single-family houses were down 2 percent in July versus the same month last year, while sales prices are up 12 percent for the year.
August will likely see an increase over 2016 as well.
There were 3,887 properties under contract at the end of the month, compared to the 3,426 properties under contract at this time last year, according to GNR. The average number of days on the market for a single-family home was 25 days.