HENDERSONVILLE, Tenn. – Modest increases in new property listings and total inventory give some indication that more homeowners may be looking to capitalize on the robust seller’s market, but the data confirms the local real estate supply is still well behind the same period a year ago.
“Increases in new listings and total inventory compared to last month are encouraging signs. We hope national economists’ predictions are correct and an improved supply helps cool demand in the coming months. Builders cannot create enough new construction to solve the shortage – we need more existing inventory to help the market level out,” said Shellie Young Tucker, ABR, CRS, C2EX, GRI, 2021 President of Sumner REALTORS®.
The average price for all types of properties (residential, multi-family, condos/townhomes, lands and farms) in Sumner County climbed to $364,682 in May, according to the latest data from Sumner REALTORS®, the nonprofit trade association for local REALTORS® and affiliated professionals. Buyers can expect to pay more than $160 per square foot, on average, or 10% more than they paid a year ago.
Even with the rising prices, most residential properties are going under contract as soon as they hit the market. The average days on market for single-family homes held at just eight days in May. Total closings were flat compared to April but have risen nearly 18% in the past 12 months.
Interest rates have fluctuated in recent weeks but remain at historic lows, and the lack of availability is making it extremely difficult for buyers to acquire their desired properties. New listings are down 23% since May 2020.
Sumner County residents may point to an apparent flood of residential development and question the inventory shortage, but builders are facing their own challenges related to material availability and cost, and labor shortages. The National Association of Homebuilders reports that material costs have skyrocketed 26% in the past year. The price of lumber, specifically, has risen nearly 40% in the same period and added approximately 35% to the cost of a new home. Many first-time or entry-level buyers are being priced out of the housing market altogether.
