The Grumbles Team brings you the first of the monthly updates to the Williamson County housing Market.
This data is derived from the Middle Tennessee Region Multiple Listing Service and is deemed accurate but relies on the accuracy of the data entered. The data prepared is for the past 6 months and only includes residential single family homes in Williamson County, one of the top 20 most affluent counties in the United States. As the data is hard to read on this blog we have provided links to the data so you can zoom in for further analysis.
Let us analyze the data for just a moment.
Look first at the ” Months of Inventory”, and imagine that instead of real estate, the product was bubble gum. The table shows that with our current consumption rate in Williamson County that there is over 25 months of inventory. That would mean that we would have enough sticks of bubble gum to last our customer base more than 2 years. So what can be done to change this inventory? Well if we sold bubble gum, we could have a “blow-out sale” (pun intended) where we cut the prices drastically so the inventory didn’t get stale on our shelves. Or we could modify the bubble gum to make it more appealing to our customers to entice them to buy my gum and not my competitors. Or we could lobby our government to pass legislature that makes bubble gum chewing socially beneficial in some way so that sales would soar. The final option would be to throw out some of the bubble gum in inventory. I guess you get the picture, it is more of a sellers market when there is less inventory on the shelf and there are various things that can reduce the months of inventory from active listings being withdrawn/expired to home prices being reduced to our federal government offering tax rebate incentives to home-buyers. Keep coming back to this blog to watch the Williamson County Inventory fluctuate up or down.
Then lets turn our attention to the Pending Ratio. This can be used to spot markets that are on the rise (sellers market). In Nolensville you can see that the Pending Ratio is 13.7% , meaning that there are almost 14% as many PENDINGS as there are ACTIVES. It is an indicator that the inventory should be going done in the future the higher this number is. As we mentioned before, when inventory is down we have a sellers market.
Lastly we will look at the List to Sales Ratio of Closed properties. Over the last 6 months and considering 1159 properties the average negotiation from the final list price to the agreed upon purchase price was only 5.5%. That is a strong indicator that the market is stable in Williamson County. Home owners are not having to take low offers to sell their properties. However to further analyze this we need to look at the final sales price vs the original list price to see how much adjusting in the price the listing agent did to get the property marketable. The average across the county was 83% and the biggest drop was seen in Franklin at 72% reduction from the original list price to the final list price at the time the negotiations began. This data is not shown in the table above but all the cities except for Franklin were in teh 90%+ range so Franklin is still a great market for buyers to come in and take advantage of the lower housing prices. The months of inventory is above average for the county so further pricing reductions will be required to get the bubble gum off of the shelves.
If you would like to meet with a member of The Grumble Team to discuss the Williamson County Total Market Overview for August 2009 we would be more than happy to discuss this with you at our office location in Franklin.
The Grumbles Team is our family serving your family with your real estate needs in Franklin, Tennessee 615-587-5843.
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