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Home sales outstrip supply as prices continue to rise


Home sales outstrip supply as prices continue to rise

Home prices in the Nashville area, which includes Williamson County, have risen more than anywhere else in the state during the past year, but demand for homes locally is outstripping supply.

home sales
Lisa Wurth

“There is a consistent downward trend on the available inventory in Williamson County,” said Lisa Wurth, 2017 President of the Williamson County Association of REALTORS®. “The significant trend is even more obvious when using a longer-term perspective. For example, there are 40 percent fewer homes available in Williamson County today than there were 5 years ago.”

May home sales in Williamson County remain on par with last year, and median closed prices reached record highs during the first five months of 2017, according to the monthly market report released by WCAR.

There were 555 total home closings in Williamson County in May 2017, including 517 single-family residences and 38 condominiums. That compares with 553 total closings, of which 509 were single-family and 44 condos in May 2016. The closings this year happened at a slightly faster pace, as the homes sold in May 2017 were on the market an average of 32 days, down from the average of 40 days a year ago.

On a year-to-date basis, home sales have increased 2.1 percent over last year. There were 2,124 total home closings in Williamson County through May of 2017 compared to 2,080 for the same period in 2016.

The median closed price for a single-family home increased slightly more than 10 percent to $474,733 in May 2017 versus $430,905 for the same period last year, exceeding the all-time record of $459,000 set in June 2016.  May also marked 15 consecutive months the median closed price for a single-family home in Williamson County was above $400,000.

May 2016

Residential Sales Activity

Closings Median Inventory Under

Contract

DOM
Residential 509 $430,905 1,363 568 40
Condos 44 $230,000 55 51 20
Total 553 1,418 619
Land 33 $250,000 393 25 108
May 2017

Residential Sales Activity

Closings Median Inventory Under

Contract

DOM
Residential 517 $474,733 1,306 580 32
Condos 38 $245,950 55 48 13
Total 555 1,361 628
Land 29 $220,000 393 32 122

“The housing market in Williamson County is challenging right now, because it is so active,” said Wurth. “The demand for homes is very high and the options are very limited. Homes are selling quickly, as evidenced by the days-on-market for May was only 32, compared with 40 in May of last year. The accolades for Williamson County continue to attract both families and major companies. The fact that the Northside McEwen 200,000 sq. ft. of Class A office space and the upcoming Crescent Communities projects in Cools Springs are actively progressing means more people are likely headed to our community. Finding good home options will become increasingly challenging. Builders are busy, but we still have quite a bit of ground to make up.”

May total active inventory in Williamson County stood at 1,361 units, 4 percent less than the 1,418 homes available during May of 2016.

For the month of May, single-family home active inventory decreased 4.2 percent from 1,363 in 2016 to 1,306 listed homes in 2017. Condominium active inventory remained the same, 55 homes in May of both years.

There are currently 1,537 properties under contract in Williamson County (formerly “pendings”). Of that total, 1,431 are single-family residences and 106 are condos. At this same time in 2016, there were 1,402 properties under contract, with 1,312 of them being single-family residences and 90 condos.

Despite the challenging lack of homes on the market in Williamson County, the Middle Tennessee Business and Economic Research Center says the housing market is strong and stable across the state.

 

New single-family construction permits were up 4 percent from the previous quarter, and up 9 percent year-over-year, and those who purchase homes are sticking with the investment.

“This quarter, mortgages past due are at a 17-year low, and housing prices are rising in all areas of the state, especially the Nashville MSA,” Business and Economic Research Center Director Murat Arik said.

The research center’s quarterly report noted that:

  • Housing prices rose more than 10 percent in the Nashville area year-over-year and more than 5 percent in the Clarksville and Knoxville MSAs. The Memphis MSA was up 4.5 percent.
  • Over the year, single-family permits are up 22 percent. Multi-family and total permits are down 58 percent and 13 percent, respectively.
  • Closings increased in all three large metro areas (Nashville, Memphis, Knoxville) over the year.

 See the full latest and previous reports with detailed breakdowns and summaries at http://mtsu.edu/berc/housing.php.

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