Franklin Monthly Real Estate Recap - May 2023

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May is shaping up to be the most active month for Closings so far this year in my personal business. And I suppose that would come as no surprise, considering the dramatic increase we've seen in Active Inventory across Williamson County during April! This chart shows we've got more homes on the market than we've had all year.

The unusual dip in homes For Sale in March, as indicated by the blue line in this graph, has only made April's increase seem that much more dramatic. But nonetheless, it is a dramatic increase in inventory month-to-month -- and you know what this usually leads to: A decrease in sales prices.

But with inventory as low as it has been, I'm not expecting any decrease to be too major from what we're already seeing. Simply because having more homes available may lure more Buyers.

How To Maintain Your Value

Before I get into the weeds with current home prices, it's important to note that homes are still selling. Obviously, not as quickly or easily as they were 14 months ago -- and certainly not as outrageously priced -- but with an increase in home Sellers, more Buyers are getting motivated to snag a home before school lets out later this month. Buyers like more options.

Buyers are also REALLY paying attention to the age of your roof and HVACs right now. They always have -- but in the past few weeks, these things have carried noticeably more weight on whether a Buyer even wants to put an offer in on a house. It's an abrupt difference in temperament for those of us who work in Real Estate every day. This, on top of wanting updated paint colors, kitchens and a primary bath. I attribute this Buyer behavior pattern to the high price of homes and higher interest rates than 14 months ago. Buyers feel like they're already paying so much for a home now. They don't want to have to do anything to it once they buy it, and they have more incentive than ever to stand their ground.

So if you're considering selling your home in the not-so-distant future, start consulting a Realtor NOW for advice on what to spend your money on -- and what NOT TO -- in order to appeal to Buyers' current tastes and demands. I cannot tell you how many Sellers I meet with who are willing to spend tens of thousands of dollars on something that won't move the needle for Buyers. There are good places to put your money -- and there are not, depending on the goals you have for your home.

I present to you the sales price difference in these two almost-identical homes. Both of these Grassland homes closed in April. They both had relatively new HVACs (4 years and younger). The HOA in this neighborhood covers roof replacement so they're on equal playing ground there as well. Both of these homes were also marketed and sold vacant. The biggest difference between the two are the interior updates.

This is the inside of 812:  It's not extremely outdated for this price point, but there are likely some changes

Buyers will want to make on the inside -- namely with kitchen cabinetry color, appliances and counter top. This one, by the way, was successfully marketed and sold by one of my Benchmark Realty colleagues, Michael Cadle. It went Under Contract its first day on market.

401 shows a difference in updates, as seen in these interior pictures:

The Sellers likely renovated this home the way they wanted it, to live in it, and then wound up selling. It is nicely done and pulled a $25,000 higher price than 812. You could argue their updates cost about $25,000 but you wouldn't necessarily have to do everything they did to get this much of a price difference. There are changes that could have been done to 812 that wouldn't have cost as much but will still reflect a higher value to the market.

Congratulations to the Seller and Realtor for 401, Alec Leaman, with Brandon Hannah Properties. This home was Under Contract within 9 days on market, and probably broke a neighborhood record. Also, both of these townhomes represent the most affordable homes recently sold in Grassland -- if this gives you any idea of our equity gains here locally!

Here in Grassland

The stats are out and Grassland is not immune to the highs and lows that the rest of the county is experiencing. However, our median sales price actually increased from March to April, when the rest of the county (except College Grove) has decreased. So that's noteworthy.

You can see in this graph, though, that we're about $59,000 below our average in the most recent 12-month period. I've kept April 2022's dot on here to show our year-to-year comparison (when we were near the height of the market).

This -$59,000 price difference reflects the exact same difference in Williamson County's average sales price Year-to-Year. It's a 5% dip in the county as a whole.

It's not a bad place to be, though.  To be honest, this slight dip in our prices has helped off-set the lack of affordability for some Buyers due to higher interest rates.

In fact, we're averaging about a month on market from list date to contract date. It's actually refreshing to feel like we're in a healthier market than we were a year ago. Everything, these past several weeks especially, just feels more... stable.

Take interest rates, for example. They're still rising and falling daily, but the extremes at which they started the year have calmed down. We're comfortably hovering in the 6% bracket now.

The Fed has made its most recent funds rate hike last week, and inflation is responding. Last week's move was the last one financial experts are expecting for quite a while now. So there's some feeling of relief in that regard as well, that we'll see a bit more economic stabilization.

The Bad Rumors

As with anything else in life, there is risk that things could get worse. Rumors of job losses, fears of bank failures and a looming recession are still forefront in my mind. And these are all factors that I continue to watch. But in the meantime, people are making moves every day that serve their best interest regardless of these factors.

I was in a conference just yesterday, where some masterminds were discussing their predictions on mortgage interest rates (going down this year), the benefits of a recession in real estate, and how to help our Buyers and Sellers turn adversity into opportunity (which is really the nature of my job every day - haha)!

One of my favorite "opportunities" I created so far this month is re-selling a home that I just sold a week prior.

A Buyer who missed out on this Temple Hills home approached me before the new owner moved in and asked me to make an offer they couldn't refuse. So here we are, Closing again in less than 3 weeks!

Yes, we're still seeing multiple offers. 

Yes, Buyers are still willing to pay for a home they LOVE.

Yes, I am having to get creative every day to help my clients reach their goals.

And for so many people right now -- this is a time of opportunity. 

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Need a plan tailored to your needs? Reach out! I'm a Franklin resident and a Multi-Platinum Award-Winning Williamson County REALTOR ranking in the top 1.5% of agents in Williamson County. I am a Million-Dollar GUILD Member of the Luxury Home Marketing Institute, my market insights are regularly featured in broadcast media, and my success planted me on the front page of a December 2021 Nashville-area Magazine. But most importantly, I specialize in helping my friends and neighbors buy and sell homes.