HENDERSONVILLE, Tenn. – New housing data released today shows that the lingering gap between supply and demand created another month of robust real estate sales in Sumner County.
Total housing inventory in Sumner County fell 5% during the past month, from 1,201 in October to 1,139 in November. Active inventory – defined as properties listed and available for sale without an agreed upon contract between the seller and buyer – dropped to just 403 in November from 461 in October, a 13% decrease in the past month.
There were also far fewer new property listings (342) compared to October (460), when certain key metrics teased a shift, however slight, in the ongoing struggle for buyers and their REALTORS to find available properties.
There was no price relief for buyers, either. Single-family homes in Sumner County sold for $448,629, on average, during the month of November, a 23% increase from November 2020 ($365,712).
“After a month of tempered optimism that we may begin to see more inventory, the market dipped back and feels as squeezed as it has at any point in the past 18 to 24 months. There is no evidence in Middle Tennessee of even a slight cooling off, yet. Buyers should expect continued vigorous competition as we close out the year,” said Shellie Young Tucker, ABR, CRS, C2EX, GRI, 2021 President of Sumner REALTORS®.
Sumner REALTORS and the regional Multiple Listing Service measure housing inventory in months’ supply, or the number of months it would take for the existing inventory of homes on the market to sell at the current pace. Six months of supply is considered a benchmark for moderate price appreciation. A lower months’ supply will accelerate price increases. The months’ supply for Sumner County in November 2021 was measured at 2.8.
Economists with the National Association of REALTORS projected recently that existing home sales will exceed 6 million in 2021, the largest number in 15 years. The market should begin to settle down in 2022, according to recent reports, with increased supply from new housing construction and the end of the mortgage forbearance program, which is predicted to cause a number of homeowners to sell. Increasing mortgage interest rates should begin to ease multiple-offer scenarios and slow the rate of price increases.