Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC
Back in 2006, Nissan North America relocated their corporate offices to Franklin TN. This move caused an influx of buyers moving from California to Franklin TN. As you might expect, there wasn't enough inventory to accommodate all the Nissan employees moving here. Not to mention the fact that California buyers were used to much higher housing prices. As a result, they were paying near or above list price when they purchased their new home. This caused median sale prices to jump in 2006 and that trend continued into 2007, when it reached a high of $385,000.
In 2008, the buying frenzy had subsided. Unfortunately, there's a lag between what is actually happening in the housing market and what consumers believe is happening. Many sellers believed they could ask even more for their home than the 2007 home prices. As a result, we ended up with too many homes on the market.
Then the crash of mortgage-backed securities in the fall of 2008 occurred. Buyers became skittish wondering if the homes on the market were going to be worth the purchase price a year from then. In 2009, we hit our lowest point since 2006 with a median home price of $345,000; a 10% drop in median sales prices. Sellers were withdrawing their homes. Everyone was nervous wondering if prices would decline further.
We experienced an upswing in 2010 with median home prices hitting $351,900, a 2% increase over 2009. Unfortunately, median prices dropped in 2011 to $348,500. Only to climb again in 2012 to $353,250.
Sales throughout 2012 continued to rise, 1,750 single-family homes sold that year. Buyers were out in record numbers because interest rates had dropped to 3%. Some parts of the country were still experiencing high foreclosures and short sales, however, the Franklin housing market was growing stronger with every sale. Franklin remained in a seller's market for all of 2013.
As many had hoped, Franklin median home prices rebounded. We ended the year strong with 2,065 single-family home sales and a median sales price of $396,633. A 3% increase over our previously highest median sales price in 2007. However, it was a 12% jump in Franklin TN home prices from 2012. Franklin TN median home prices reach an all-time high.
As is so often the case, Franklin TN home sellers haven't fully realized the market we are in. Inventory is extremely low, however, buyers are still out to take advantage of interest rates before they rise. There are only 578 Franklin single-family homes on the market. Almost a third of those are currently under contract. That leaves under 400 homes at all prices available for sale.
Many economists are predicting that 2014 housing numbers will surpass 2013. If you have been waiting for the housing market to rebound to sell your house, give Franklin Homes Realty LLC a call at (615) 495-0752 to discuss selling your Franklin TN home. I would be happy to go over the recent comparable sales prices in your area. You may be pleasantly surprised to find prices have gone up in your neighborhood as Franklin TN home prices reach an all-time high.
About Tammie White, Franklin TN REALTOR®
Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.