Sumner REALTORS®, the nonprofit trade association for local REALTORS® and affiliated professionals, reports that Sumner County experienced an unusually competitive market in February, with homes selling on average 12% higher than last year due to increased buyer competition and limited inventory.
The latest Multiple Listing Service data reveals that Sumner County experienced a 2% increase in new properties under contract in February compared to January, but there were nearly 30% fewer new property listings on the market compared to February 2020, before the COVID-19 pandemic. Average sales price on all properties (residential homes, multi-family homes, condos, and lots/land) last month was more than $355,000.
Limited inventory stifled buyer demand for months, so newly listed properties sell higher than listing price. Single-family homes are lasting only 19 days on market, on average.
“We can toss seasonal predictability out the window for 2021. Supply and demand will write the story this year. Two months in, we are seeing multiple offers and sales prices higher than the listing price more often than not. Property owners who have considered selling for any reason would be wise to capitalize on this extraordinary environment,” said Shellie Young Tucker, ABR, CRS, C2EX, GRI, 2021 President of Sumner REALTORS®.
Economists with the National Association of REALTORS® reported last week that rising mortgage rates may cause some potential buyers to reconsider. Purchase activity has cooled slightly on the national level, but REALTORS® report local demand is still far outpacing available supply.
“Many REALTORS® are working with clients from various parts of the country relocating to Middle Tennessee. Prices may still be favorable here compared to some larger metro areas, but buyers can be easily frustrated at the lack of housing on the market. The current challenge for REALTORS® is to educate buyers on these market dynamics and set the proper expectations,” added Tucker.