The Sumner County, TN Real Estate Market is continuing in a HOT trend due to low inventory levels and high buyer demand. The Average Home Sales Price is at $358,096 up 13.2% or roughly $41,600 over 2020. Homes Available For Sale came in at only 545, down 60.6 %. The Price per SqFt was up to $169 a 15.8% increase over February of last year.
The YTD Data shows the continuation of the the above Sales Price Increase and Low Inventory vs. January and February 2020. The Average YTD Sales Price is $360,648 up 14.3% over Jan & Feb 2020. YTD Inventory Levels are at 1.5 Months Supply down 61.5% from 2020. The YTD Price per SqFt is $164 up 5.8% from 2020.
Average Sales Price
February Homes For Sale
Average Price Per SqFt
Avg YTD Sales Price
YTD Inventory Levels
YTD Price per SqFt
How long will home prices remain this high?
The Middle Tennessee Area is experiencing a major housing shortage. Homes are selling within hours of being listed with multiple offers and for more than list price. According to North American Home Builders Association, building material costs have increased 180% since last Spring. This has increased the average cost to build a new home by $24,000. This increased cost of building materials, low inventory and high buyer demand will keep prices where they are through the Summer months.
Record-Low interest rates are also playing a significant role in the Nashville Area housing market. You have buyers taking advantage and wanting to buy coupled with would be home sellers refinancing and staying put. Kiplinger’s Interest Rate Forecast projects Mortgage rates to increase to 3.5% by the end of 2021. In previous markets higher interest rates have helped slow buyer demand; however, 3.5% is still really low and I don’t think we will see any drop in Buyer demand until rates rise above 4.0%.
(This report is based on All Property Types (i.e. Single Family Homes, Townhomes, Condos, etc.) in Sumner County with Monthly and YTD totals provided by Realtracs.com®)