OPPEXX

Experts in Operational Real Estate

Tennesso, Fla.

— Tennessee, the state with the second-highest foreclosure rate in the country, is seeing its real estate market rebound as home sales rise by nearly 7,000 percent in the past year.

The statewide average of 6,821 sales in 2016 is now 6,764.

The number of sales in 2017 is 6,752, according to the National Association of Realtors. 

In 2016, the average sale price was $6,100.

This year, the median price is $5,931.

The average price for a home sold in the state in 2017 was $76,600, according the NAR. 

“It is really good for people to be able to afford to buy,” said Tom Smith, vice president of real estate at Smith Real Estate in Tallahassee. 

According to Smith, sales for the year have climbed by 9,700% to a record high of $82,500. 

This year, Smith has seen sales rise even more, as more buyers are signing up.

“The market has become more diverse, more people are coming into the market,” he said.

“There is a greater awareness of homes and the need to be aware of them, the price is going up, so people are more willing to get into it.” 

Smith said he has seen a noticeable uptick in the number of people wanting to buy.

 “We are seeing a lot more people coming in and we have seen a lot of the older families coming in, too,” Smith said.

Smith said it’s not just people wanting homes they can afford buying.

He said people want to be in the market for their retirement and they also want to know if there is a good place to live for them.

“People want to get in and have the option to buy their dream home, so it’s good for the market to be expanding,” he added. 

A large portion of the growth in the average sales price of a home is due to younger buyers who are looking for homes with bigger living spaces.

“It’s an increase in the numbers of younger people who are interested in purchasing homes and homes for themselves,” Smith explained. 

It’s not a new trend.

Sales of new homes in Florida rose by 3,300% from 2005 to 2018, according a report by NAR, a trade group representing the real estate industry.

In that time, the number and average price of new sales rose by about 4,100%.

In 2017, the NAM released a report showing that the median home price in the Sunshine State rose by an average of 5,934% over the previous five years.

The NAR said the median sale price in 2017, at $86,600 is up about 7,500% from $82 and the median income for a homeowner is up by about 5%. 

This has led to an increase of 2,100% in the amount of homes available to buy, said Smith.

“That has allowed the state to see a great amount of new growth,” Smith added.

In addition to higher demand from younger buyers, the rise in home prices has led many families to move to the suburbs, Smith said, adding that the area has become a better place to buy a home.

Smith also said there is also a greater need for seniors and other people who need to rent.

Many people in the Florida suburbs are in debt, Smith explained, and many of them don’t have the money to pay rent on their homes.

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