How Much Will I Pay For a Franklin TN Condo/Townhome? January 2015

How Much Will I Pay For a Franklin TN Condo/Townhome? January 2015 

As we start the new year, buyers are asking the question, "How much will I pay for a Franklin TN condo or townhome in January 2015". Chief among the factors are the size of the unit, the condition of the unit and its location. In addition, and of great importance to you, is whether prices are going up or down, or whether it's a buyer's market or a seller's market. To understand these factors you need to look at a current market report. Let's take a look at what happened in Franklin TN in December 2014.

• Active condo/townhomes listings: 52
• Of those units currently on the market, the number under contract: 10
• Properties closed in December: 15
• Average sales price: $330,137
• Average list price: $333,908
• Average sales price to list price ratio: 98.9%
• Average days on the market: 56
• Average per SF price: $176.07
• Lowest per SF price: $98.95 (Andover)
• Highest per SF price: $250.86 (Grant Park)

What difference does all this information mean to buyers? If you are a buyer you will want to know how much competition you might encounter when you are ready to make an offer.  Is it a buyer's market or a seller's market? This is critically important to you, the buyer. To determine whether it's a buyer's or seller's market, REALTORS® use something called absorption rate. If you take the current inventory of 52 homes and divide that by last month's closed sales (52/15) you get 3.5 months. That means if the current inventory stayed the same, it would take about 3 1/2months to sell all the existing homes.  A normal or steady market would be 5-7 months; anything under 5 months would be considered a seller's market; anything over 7 months would be considered a buyer's market.

The Franklin TN condo and townhome sales for December 2014 reflect a seller's market. The inventory continues to be extremely low which coupled with steady demand continues to drive the market upward.

Over the last year, prices on condos and townhomes have risen an average of 10%. The sales price to list price ratio remains at a high level (98.9%).  This means that if a unit is "priced right",  you may have a somewhat limited ability to negotiate. This varies greatly from unit to unit and and from development to development. It is extremely important to enlist the aid of an experienced buyer's agent to help you pay no more than you should for the condo or townhome you desire.

I've included the lowest and highest square foot prices for units sold in December, and the names of those developments. If you click on those developments you’ll find their current listings. In this market, buyers need to act very quickly to secure the home they desire. TW Realty Group is here to help. When you are ready to buy a Franklin TN condo or townhome, contact Tom White of TW Realty Group at (615) 870-8169.