Middle Tennessee's real estate market seems to have stabilized as inventories have grown but entry-level homes are still lagging, according to Greater Nashville Realtors' monthly report.
“The numbers in July show a slight decrease (across the region) in closings compared to 2017, but the market remains stable as we continue to see a steady inventory increase,” GNR President Sher Powers said. “We are pleased to see inventory continue to grow across Middle Tennessee, which is not the case in other markets across the country.”
Active inventory at the end of July was 11,671 which increased from 9,151 in 2017, according to GNR's numbers.
While inventory has increased, Red Realty's Steven Dotson is worried it's in the wrong price points.
"I have to agree with the National Association of Realtors economist in that the extremely low supply of homes at the lower entry levels is causing prices to increase out of reach for many entry-level home buyers," Dotson said in his Red Report.
This means more people are renting, which in turn pushes up prices in the rental market. The increase in monthly rent means they can save less for a downpayment.
"I think this will also cause more entry-level buyers to consider areas further away from their employment that they may not have considered in the past," Dotson said.
That could translate into even higher commute times as employees have to travel more miles to get to work. That's not a prospect anyone on I-24 wants.
In the meantime, those entry-level buyers are content to sit on the sidelines and wait.
Powers, on the other hand, thinks the increased inventory will stabilize prices and get some buyers off the bench.
“The continued increase in inventory can lead to a more balanced and healthy market across Middle Tennessee, calming the steady pricing increases we've seen in the past few years, which in turn may inspire buyers on the fence to start their home buying search,” Powers said.
Real estate by the numbers
Year to Date: In Rutherford, Williamson, Davidson and Wilson counties.
Year-over-year: total closings were up 3 percent in July 2018 versus July 2017, closings were down 3 percent in July versus July 2017, while closed prices increased 2 percent in the four-county region.
Average Closed Prices: are 57 percent higher at $395,023 & 2 percent higher than 2017.
According to the GNR's numbers, there were 3,347 properties under contract at the end of the month, compared to the 3,575 properties under contract at this time last year. The average number of days on the market for a single-family home was 25 days.
County by county
Rutherford: Closings increased 1%; Closed prices increased 9% to an average of $277,930
Williamson: Closings decreased 2%; Closed prices decreased 1% to an average of $553,188
Davidson: Closings decreased 5%; Closed prices increased 2% to an average of $386,310
Wilson: Closings decreased 1%; Closed prices increased 3% to an average of $343,288
Source: The Red Report
Michelle Willard is a freelance journalist who fills her days with social media marketing, politics, true crime, and taking complaints. You can complain to her on Twitter @MichWillard or by email michelle(at)murfreesborovoice.com.
