Endangered Species- Sub-$500,000 Homes in Williamson County

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By Ashley Irwin

As communities become more popular, it is inevitable that the real estate market will shift. Areas become more populated as they become more desirable, making the prices of homes rise and the number of homes available shrink. Williamson County is no stranger to a growing population as it becomes one of the most desirable counties in Middle Tennessee. One change to the Williamson County real estate market is that it is getting harder and harder to find homes under $500,000. The idea of finding a fixer-upper is almost becoming nonexistent in the county. To better understand why this trend is taking place, you need to understand the difference between a buyer’s market and a seller’s market.

Right now, Williamson County is predominately a seller’s market. This is because homes are selling so quickly and for quite a bit of money.The median sales price for a single-family was $441,990 in August, which represents a new record amount for the month of August surpassing the previous record of $415,000 set in August
2015.

A seller in Williamson County does not need to worry much about getting their home to sell because they will most likely receive multiple offers very quickly. A seller’s market makes it very difficult for homebuyers to find homes, especially affordable homes. It is very difficult to find a real estate listing for under $500,000 in Williamson County in the current real estate climate, allowing sellers to dominate the market.

For buyers looking for mid-priced and mid-sized homes, they are probably coming up empty on available properties.

The kinds of houses available, mostly in the $600,000-and-up range, differ from what people want, which are houses in the $250,000-to-$400,000 range, said David Logan, President of the Williamson County Association of REALTORS in an August interview.

As the number of available homes shrink, sellers can start raising the asking price because they know that buyers are going to purchase the homes, even if it is at great cost to them. As Williamson County grows and more jobs come to the county and Nashville, the number of homes available will not be able to accommodate the number of buyers searching for homes. The shrinking number of homes makes sellers eager to begin pricing their home very high because buyers will be desperate to purchase.

Another reason why it is getting harder to find a home under $500,000 in Williamson County is the costly price of the land. Realtor Susan Gregory says, “Because land value has gotten so high, by the time the land for a subdivision is purchased, the homes are built, and the homes are put on the market, the price of the home becomes more expensive.” The land in Williamson County is becoming more expensive and more sparse since the area has become more popular. The approval process for building homes can also take a very long time, another factor that Gregory attributes to the rising prices of homes in Williamson County.

When we interviewed Brant Bousquet, Hard Bargain Association director, in August he explained that for a builder to make a profit, they must build larger homes to cover the cost of the land.

“That is why you see so many houses that are 3,000 square feet and bigger being built. You don’t see anything between 1,500 to 2,500 much at all.”

As the area becomes more populated, it can be expected that the prices of homes will continue to rise or stay the same. Real estate trends can shift very quickly, however Williamson County’s growing popularity may cause the area to simply cost more in the future.

 

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