Sales are up and home prices continue to rise in our market, which is great news if you’re a homeowner.
What’s been going on in our middle Tennessee market lately?
According to the latest reports, there were 3,872 home sales this past July—an increase of 4% overall from where we were at this time last year. Sales continue to rise and demand is still high, which is putting upward pressure on prices. This is great news if you’re a homeowner because your home is likely to have seen a good amount of appreciation over the last couple years.
Specifically, prices for residential single-family homes have increased 8% year over year. Condo prices have increased 7% in the same time span.
Sales continue to rise and demand is still high.
One of the things we’re watching closely in our market is interest rates. Right now, they’re at roughly 4.25%, and experts predict they’ll end up at around 4.5% by the end of the year. Remember—every little uptick in interest rates costs you a little bit more in terms of your monthly mortgage payment. The Federal Reserve is saying they may raise it up to three times next year, so we’ll have to wait and see what happens.
The other thing we’re paying close attention to is the lack of available lots to build new homes on. As far as inventory goes, there are 554 fewer lots than there were at this time last year, which is a 23% drop. This shortage will continue to constrict supply and be an issue for us for the next several years, as there’s only so much land to go around and only so many developers who can produce new opportunities for houses.
If you’d like to take advantage of the equity you’ve built up in your home, we can put you in touch with a good lender to help you refinance. If you have any other questions about our market or we can help you in any way, give us a call or send us an email. Talk to you soon!