Real estate agents serving Tennessee’s Williamson County market say midsummer 2022 property values and pricing continue to favor sellers. But they are acutely aware of macroeconomic changes that may soon create a shift in market dynamics.
According to the latest market survey by brokerage and real estate insight leader Compass, 55% of agents believe that the second half of the year will see more equalizing between sellers and buyers as fall inventory levels edge up and pricing becomes more normal. And 62% believe days on the market may increase but only moderately, by seven to14 days.
Looking back at the first half of 2022, however, Williamson County market data compiled by Compass shows a strong seller’s market in play with continued demand. New listings in the second quarter grew a whopping 46% and homes sales by 56%. Countywide, days on the market shrunk by 9%, to just 42 days from list to offer.
Thus far in 2022, these factors greatly benefited sellers, who experienced a 10% quarter-over-quarter increase in median home price for the area. Although home prices widely vary throughout its 584 square miles, as a whole the county reported a median home price of $854,000, 29% over the same period last year.
Despite strong signs that shifts will occur moving forward, agents expect any cooling in the area to be very slow and subtle. Continued steady demand for homes in the rolling hills of Brentwood, Franklin, Spring Hill, and other communities has established WillCo as a rare jewel in Middle Tennessee.
Shifting sands
Although the area has demonstrated staying power, real estate professionals and economic experts say an eventual tipping point toward balance is imminent. Even in the face of strong demand, there’s little doubt that the 40-year high in inflation and steep spikes in interest rates will eventually catch up to the market, albeit slightly.
Compass agents say they’re prepared for some normalizing to dial down the frenzy and to protect buyers and sellers from making rash, rather than responsible, decisions.
Compass agents Elle Hatcher and Missy Roten say they’ve already seen signs of balancing, which they welcome, especially on behalf of buyers. But in the wake of stratospheric pricing in 2021 and 2022, they say sellers need guidance to dial down unrealistic expectations while still garnering the best offer for their home.
“Now that we’re transitioning into a more balanced market, we’re spending time educating our clients on ways to prepare their home for market to attract buyers, including offering buyer incentives,” Roten explains. Hatcher agrees, saying she is now seeing sellers incentivized to offer price improvements as well as to give money toward closing costs, offer home warranties, and make repairs.
These are all indications, they say, that the market is stabilizing — which is a good thing. Compared to a time “when our buyers were offering $200,000 over the asking price and waiving everything, and still not winning the bid,” Hatcher says, “we greatly needed this calming.”
Williamson’s allure
While many out-of-staters are lured to Middle Tennessee, Williamson County, in particular, continues to boast healthy growth.
“Williamson County has consistently produced successful growth, positive school report cards, and historically proven to be a confident real estate investment,” Roten says.
Within the county, Roten says one of the hottest gems right now is Nolensville, which affords more buying opportunities for all budget levels and for its proximity to Brentwood/Franklin as well as the Nashville-Murfreesboro corridor.
Hatcher notes the Westhaven/Berry Farms development near Franklin is also highly sought after for its planned community environment and amenities. “This [mixed use] area gives out-of-state buyers a safe and integrated living environment,” she says.
According to Roten, another jewel is Fairview, which is experiencing quite a bit of growth in “new home developments, including a townhome community.” It also offers beautiful, natural space to enjoy within Bowie Nature Park, one of the largest city-managed parks in the state, she says.
Staying smart and focused
To navigate the nuances of a shifting market, agents say there’s no substitute for working with an experienced professional who knows how to bring the right buyers and sellers together and help avoid headaches.
“Partnering with a knowledgeable real estate professional who understands the market in real-time can literally protect a buyer from potential nightmares, and even save them money,” Roten says.
They both say timing is everything. Their advice for buyers? Don’t wait — because despite the old adage, “what goes up doesn’t necessarily go down,” home prices are not going to drop. With interest rates climbing, Hatcher says it’s best to jump on the equity train now, because “you can always refinance.” Roten agrees. “A homeowner can refinance as soon as the rates go down, which will more than likely occur before selling your home.”
As for sellers, Roten advises it’s time to get competitive again. “Prepare your home to sell, and price it right. Making sure your home is in pristine condition, including repairs or even renovations, is important for attracting buyers and receiving an offer quickly.”
Compass’s full report on all area residential market activity can be found here.
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