HENDERSONVILLE, Tenn. – The average sales price of a single-family home in Sumner County was $426,703 in August, a 3.5% increase from July and a whopping 19% higher than August 2020. Homes are selling just 9 days after being listed, on average.
The latest data from the regional Multiple Listing Service was released today by Sumner REALTORS®, the nonprofit trade association representing more than 900 local REALTORS® and affiliated professionals. The association issues monthly statistical reports to keep its members informed and provide an overview of notable market activity.
“The upside of this market is that people who are in a position to sell can capitalize on the equity they have amassed in their homes, which has rapidly accelerated during the past 18 months. The downside that many would-be buyers are experiencing is that it can be incredibly difficult to find a property, and when you do there will almost certainly be a bidding war that pushes the sale beyond the list price. Gradually rising interest rates may begin to cool the demand and it will level out eventually. But the price increases are not artificial or temporary. This is not a bubble,” said Shellie Young Tucker, ABR, CRS, C2EX, GRI, 2021 President of Sumner REALTORS®.
Year-to-year price increases are a windfall for homeowners who weathered the pandemic without a job loss or other financial hardships. A homeowner whose property appraised for $300,000 a year ago, for instance, may now have $57,000 in additional value.
Tucker said the association hopes big equity gains will persuade more property owners to cash in and inject much-needed inventory on the market. With new construction lagging far behind pace, listings from existing homeowners are the only way to affect supply.
At month’s end there were 1,195 single-family homes on the market, but only 417 properties were considered active (for sale) in the MLS. The remaining 778 were under contract. The 2.7 months supply of inventory is as low as it has been since May 2018 and well short of the average of 4 to 5 months.