Year to Date Real Estate Activity for Wilson County, TN
January 1, 2009-May 31, 2009
I am being asked a lot how the real estate market has been affected here in Wilson County, so I thought this might be of interest. As you can see when you compare the year-to-date activity (above) to the 2007 activity (below), the Average LP (List Price) is up, but both the Average CP (Closing Price) and %CP/LP is down; however, the Average Days on Market (DOM) has increased. So, to answer the question I am often asked, "Yes, the real estate market in Wilson County has slowed".
So how can you work this to your advantage? Its a GREAT opportunity to buy, especially new homes in the speculative market. A lot of builders have unsold inventory on hand, some of it unsold for over a year, and as long as it is sitting there unsold they are having to pay interest on the building cost. Many of them are really getting strapped with the current economy, just like most of us, and are facing the reality of either selling inventory or........
So if you're considering trading up or especially if you are looking for rental property, this is a fantastic opportunity. Why buy a "fixer-upper" to rent when you can buy a brand-new, never-lived-in house at, potentially, a cut price! You can usually still pick your colors, have no repairs, and even have the builder's 1-year warranty.
Give me call at 615-466-3033 and lets talk about it!
January 1, 2008-May 31, 2008
January 1, 2007-May 31, 2007
Before you get too excited about these number or call to ask your Realtor why your house has been on the market for 150 days when the average time is 66 days, let’s look a bit deeper at these numbers.
First, these are the figures for all of Wilson County through the end of May 2007, 2008 and 2009, and cover every Residential Listing from a $65K single-wide to a multi-million dollar home on the lake. Wilson County has been experiencing a great deal of “upper-end” growth over the last couple of years, with Providence, Five Oaks and several other developments adding a lot of $300K-plus to the market. Additionally, inflation has pushed what is considered “starter homes” from the $100K range to the $140K range.
When you look at the “%CP/LP” (the percent of closing price to list price) it is VERY important to bear in mind that in new, upper-end developments there is not a lot of negotiation of price; it is much more common to actually pay over the listed price, due to customer add-ons (the enlarged deck, the upgraded hardwood flooring, the premium counter-tops, etc.). So don’t be misled into thinking that you will necessarily get almost 97% of asking price for your 10-year old home.
The new-home market also dramatically affects “Avg DOM” (average days on market). I check the MLS Hotsheet several times a day, and it is very common to see a home posted as Listed, Pending and Closed all on the same day. That means the DOM for that home is ZERO!!! Again, this is usually due to it being a new construction with a pre-construction or early-construction contract. With the huge growth in Mt. Juliet and most particularly Providence, I would not be surprised if we have had 100-plus Listing/Pending/Closed that occurred on the same day this year alone. This really skews the DOM figure.
Finally, discuss this information with your Realtor. If you have placed the sale of your home in the right hands, your Realtor should be aware of this information anyway and can discuss it with you logically. And if you're currently considering putting your home on the market, I hope you'll give me a call at 615-406-6006.
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Thanks,
Steve Heydel