The old saying is that all real estate markets are local, and that is certainly true. In the media you hear statistics being quoted , some of which may be conflicting. Are the statistics for local or national sales; new homes or existing homes. Well this update strictly looks at Sumner County real estate.
The easiest way to describe our market in 2011 as compared to 2010 was that it was about the same. In 2011 there were 1,862 residential homes sold at an average price of $194,076. In 2010 there were three more homes sold (1,865), at an average price of $206,435. This translates to a little more then 3% drop in value for 2011. The only encouraging statistic in comparing 2010 and 2011 is that the inventory of homes fell by 13% to 1,622 average number of actively listed homes in 2011. That number while smaller still represents a 12-month supply of homes as the market. By comparison in the excellent market of 2006 there were 45% more homes sold (3,346) in Sumner County and the active inventory was only a 4.5-month supply.
So what does the new year hold for the local real estate market. These predictions are based on the opinions of experts plus my own observations for our real estate market.
(1) The real estate market should slightly improve for 2012.
(2) Home values should stabilize in 2012.
(3) Interest rates should remain very low in 2012.
(4) Home ownership rates will continue to drop and rents will continue to rise in 2012.
(5) As much as 30% of all residential sales will be distressed sales (short sales, foreclosures, and individuals taking personal losses) in 2012.
(6) Banks will do a better job of streamlining and making more efficient foreclosures and short sales purchases. Banks will also release more of the distressed properties to the marketplace in 2012.
(7) The number of licensed realtors in Tennessee will stabilize in 2012.
In my next post I will explain some of the reasons for these trends and the many opportunities they present for buyers and sellers in the coming year.
Have a good and prosperous 2012...
