Tennessee single-family home sales rose five percent in May 2016 over the previous May (from 6,821 to 7,163), while the median price rose 5.4 percent (from $185,000 to $195,000), and inventory dropped 28.2 percent (from 33,110 to 23,781), according to numbers compiled by the Tennessee Association of Realtors.
Meanwhile, condominium sales held steady (672 vs. 671) and the median condo price inched up one percent (from $150,000 to $165,000), while condo inventory dropped by 38 percent (from 2,785 to 1,728).
In both categories, a continuing squeeze in inventory helped to boost median prices statewide.
Year to date (Jan.-May), Tennessee home sales were up 7.5 percent, and the median price rose 7.3 percent over the same period in 2015.
“Buoyed by a strong economy and Tennessee’s continuing popularity as a destination for businesses and new residents, sales and median prices remain on the rise while the number of homes available for purchase has tightened,” said Chattanooga broker Randy Durham, 2016 TAR president.
“Weighing all factors, especially the growth mindset and vibrancy we see in every corner of the state, this remains an excellent time to buy or sell a home in Tennessee,” Mr. Durham said.
A breakdown of May’s numbers by the state’s three Grand Divisions (West, Middle and East) illustrates each region’s distinctiveness. For example:
Single-family home sales grew the most in East Tennessee; they were +10.2% in East (from 1,888 to 2,081), +3.3% in West (from 1,306 to 1,349), and +2.9% in Middle (from 3,627 to 3,733).
The median price of a single-family home grew the most in Middle Tennessee; it was +6.4% in Middle (from $211,900 to $225,500), +5.8% in East (from $165,268 to $174,900), and +2.7% in West (from $146,000 to $149,900).
Inventory of single-family homes dropped the most in Middle Tennessee; it was -34.3% in Middle (from 14,035 to 9,214), -25.3% in East (from 12,533 to 9,361), and -20.4% in West (from 6,542 to 5,206).