Home sales were down last month in Franklin.
The latest housing report from REMAX/Advantage shows houses selling slower in Franklin in December, compared to December 2017.
Experts say the slowdown is due to rising interest rates, a surplus of new construction, and sellers trying to get the highest price possible for their property.
But they say this isn’t something Franklin residents who might be thinking about selling their homes should be alarmed about…at least for now.
Jeff Checko from REMAX/Advantage says, “We’ve got the supply and demand factor that puts like a cloak over our market so if we had a neutral population growth, then I think interest rates would really be more reflective of home values. But since there are so many people moving here you still create some factors that are favorable for sellers. Now that doesn’t mean that home prices won’t eventually follow suit with what we’ve seen, again you’re looking at monthly numbers from year over year so you may see home prices follow suit, but if we continue to grow the way we are, you may not. You may continue to see prices tick up in general because of all the people moving here.”
As people continue moving to Middle Tennessee, they seem to be flocking to one county in particular: Rutherford County
People are looking for a home that’s reasonably priced, in an area with a lot of amenities and great schools.
Experts say even with rising interest rates, home sales in Rutherford County are skyrocketing.
“You look at places like Murfreesboro where they were actually up which is interesting and I think that shows that with a lower average purchase price, it shows that interest rate is having a little effect on buyer price point suppression,” says Checko. “So you know somebody who may have been able to afford a Franklin or Brentwood or even a Springhill with rates lower, people buy payments not purchase prices, so when those payments for say $2000 a month become $100 or $150 less than they would have been this time last year, we’re going to shop for less expensive houses. So I think that is really a telling statistic when you compare Rutherford County versus Williamson County.”
Checko says this trend of buyers choosing to live in Rutherford County will continue.
“If rates continue to rise you’re absolutely going to see more activity in places where prices are more conducive to affordability.”
Checko says even though houses aren’t selling as fast in the Franklin area, sellers shouldn’t be alarmed– they should just make sure their homes are priced realistically.