Prices Rise, but Home Sales Drop 10 Percent

Williamson County’s housing market is down for the second month.

The Williamson County Association of REALTORS released numbers on Wednesday for the month of August, showing that residential sales fell 9.9 percent compared to August of 2015.

Also, inventory is down. Total available residential inventory in Williamson County stood at 1,686 units at the end of August, indicating a three-month supply of available homes. A six-month supply is considered to be a balanced market.

Meanwhile, median price increased by 6.5 percent to $441,990 over last August, when the median hit a record $415,000.

The numbers reflect inventory not keeping up with – and not matching up with – demand.

“The reality of the market is that it is a good time for would-be sellers to list their home, but the conditions also make it difficult for would-be buyers because the low inventory keeps prices at a premium,” said David Logan, president of WCAR. “Even in Williamson County’s affluent market, a buyer wanting to move to another home in our community is finding it challenging,” Logan said.

The number of home closings in August 2016 was 547, versus 607 in August 2015.

For the month of August, available inventory declined for both single-family homes and condominiums. Single-family home inventory declined 8.5 percent from 1,763 in 2015 to 1,613 listed homes in 2016, while condo inventory fell 24 percent from 96 in 2015 to 73 listings in 2016.

Overall in 2016 housing sales are up, with year-to-date home sales at 3,812, an increase of one percent over the 3,772 closings for the same period last year.

“The real estate market in Williamson County mirrors the activity nationally and in other competitive markets according to the most recent national and regional housing market data,” Logan said. “The slowing of sales in our area follows the trends experienced nationwide and was anticipated due to the reduction in inventory and rising prices.”

The numbers in June showed a 13 percent decrease in sales.

“We’ve got some crazy dynamics going on that all in all are pointing to a slowdown,” Logan said at the time, when he estimated the market had a two-month supply. “There is just not much to choose from,” he said. “There is hardly any of what people do want, and more, but still not much, of everything else.”

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, according to WCAR numbers. Of active listings, the median price is about $600,000. The median price of a house just sold or pending is now $441,000.

Logan attributed the June numbers in part to a double demand.

“On the one hand you have expanding families, looking for $350,000 to $450,000 homes. And on the other hand you have older people, whose kids might have left home, realizing keeping a 4,000 square-foot home makes no sense. So they look to downsize to reduce maintenance and maybe use the money to buy a vacation home or a lake house somewhere.”

During the past five years, inventory has dropped while price and demand have risen. In 2011, there were 28 percent more single-family homes and condos on the market than there are today. Total home closings are nearing double the number of closings compared to five years ago. The median sales price for a single-family home and condo has increased by $90,000 and $40,000, respectively, in the same five-year period.

“During the last five years, the Williamson County residential market has seen an increase in activity.  However, we’ve experienced a decrease in inventory, coupled with a steady increase in median sales price,” added Logan.

[scroller style=”sc1″ title=”More Real Estate” title_size=”17″ display=”cats” cats=”16″ number_of_posts=”12″ auto_play=”5000″ speed=”300″]

Share on Facebook

Tweet