The breakneck pace of the local real estate market did not slow during the holiday season and ended the year on another high note, at least in terms of price appreciation. The average price of a single-family home in Sumner County sold in December 2021 was $457,102, compared to $370,923 in January – a 23% increase during the calendar year.
Sumner REALTORS®, the nonprofit trade association for local real estate professionals, offered a monthly snapshot of the market throughout the year based on transaction data from the regional Multiple Listing Service (MLS). The latest data from December shows little to suggest that the trends that held for the previous 11 months would turn with the new calendar year.
“The story of the year for real estate professionals was supply and demand,” said Kelly McDaniel, owner/broker of Weichert REALTORS® – Southern Realty Partners in Hendersonville and 2022 President of Sumner REALTORS®. “The gap between available properties and insatiable demand really drove up prices in Sumner County, in Nashville, and across the country. We are hopeful that gradually increasing interest rates and more inventory will ease the demand this year, slow the rate of price increase and allow more buyers to find homes.”
A recent survey indicated that inflation is causing buyers and sellers to change their plans: 29% say they are delaying buying a home due to inflation, while 24% of aspiring buyers say that they will accelerate plans to buy.
The 30-year fixed-rate mortgage, meanwhile, is expected to average between 3.5% to 3.6% by the end of 2022. The increase may not appear significant compared to the record-low rates of 2021 but could be enough to push some potential buyers out of the market in 2022, especially first-time buyers who are already challenged with affordability because of rising prices.
“New construction happening all over the county will help close the gap between supply and demand, but it cannot be built fast enough. We really need more existing homeowners to sell, and even then, it will likely take months if we are going to reach a healthy level of inventory,” added McDaniel.
Total inventory dipped 14% in Sumner County in December 2021 compared to the prior month, and there were only 362 new property listings in the MLS, compared to 426 in November.