"The Build It Network"

Home builders continue to sell homes and work through inventory. 

According to data from the Census Bureau, the number of new homes sold in September jumped 6% from the month prior, beating analyst expectations. On a seasonally-adjusted, annualized basis, buyers nationwide closed on 313,000 newly-built homes last month.  It's the highest reading since April and a major reason why the available number of new homes for sale is shrinking.  

As compared to September 2010, there are 19% fewer homes for sale nationwide. At today's sales pace, the complete new home inventory would be "sold out" in 6.2 months - the quickest sell-out pace since the April 2010 federal home buyer tax credit expiration. 

What does this mean to our local market?  We are continuing to see price appreciation in all counties except Rutherford County where there is a dramatic shift to sales of smaller homes and the Laverne area continues to have price reductions to move distressed homes. Good news is that homes are moving at a good pace in Rutherford County. 

According to the Williamson County Association of Realtors the median sales price for a single-family home is $346,724 in September 2011. This is up from the September 2010 median sales price of $330,000. Average Inventory decreased from 2,260 in September 2010 to 2,059 in September 2011, showing a continually steady move in residential inventory (September, 2011). 

Williamson County continues to be a "hot bed" of activity compared to other local and national markets. It is a slow recovery, but economic development and high-performing schools continue to drive our recovery efforts (williamsoncountyrealtors.org September, 2011). 

For buyers, this could be construed as a housing market-shifting signal. As builder confidence rises, it becomes more difficult to negotiate for upgrades and price reductions on a new home. "Great deals" get scarce. 

Furthermore, it's unlikely that mortgage rates will sustain their current, ultra-low levels into 2012. Rising rates lead to higher housing payments on a month-to-month basis.  

If you're in the market for a newly-built home, DAC Homebuilders continues to work hard to bring exceptional value to our buyers. In our next news letter we will begin to announce our long term land position in some of the BEST Williamson County communities. If you are ready to save, please contact us to learn more about our custom value in Middle Tennessee. 

Until Next Time,

 Brent   

Brent Beard is a licensed Real Estate Affiliate Broker in the State of Tennessee with Benchmark Realty and Managing Partner of Community Solutions Group LLC.  

 615.278.4112