Market Update for Farragut 37934
Everyone always asks me so “How The Real Estate Market?”… I have to say the current market in Farragut has improved greatly in the last 12 months. Let’s compare first quarter stats from 2014-2015 in zip code 37934 which is Farragut.
Here is a chart with side by side numbers then we can break down the numbers and compare
|First Quarter 2015-2014 Zip Code 37934||2015||2014|
|Average List Price||$450,795||$424,037|
|Average Sale Price||$327,269||$296,009|
|Average Days On Market||87||70|
Average List Price: When you compare the two years you can see that in Farragut the average list price increased from $424,037 to $450,795 or a healthy 6% increase. This is very good for home sellers because we haven’t seen something like this in awhile. But as we continue to compare the numbers you will see why this is happening.
Average Sale Price: As you can see comparing these numbers prices have increase from 2014 to 2015 in the first quarter. We have seen the average sale price go from $296,009 to $327,269 or and almost 9.5% higher from one year to the next. That is something that sellers haven’t seen in awhile but that is because the overall market has improved that much in a year.
Average Days on Market: Here is an area where we did see and increase in the time it took to sell from 2014 to 2015. It took 17 days longer in the first quarter in 2015 to sell a home. But if you remember the wonderful weather we had in February this year that is the reason. For almost 3 weeks it was almost impossible to get around town to do anything and that is why I think this number increased from one year to the next.
Absorption Rate: What the heck does that mean? An absorption rate means that if no other homes came on the market it would take that many months for the homes on the market to all sell. Here we saw a huge drop in the Farragut market by almost 1.2 months. When the absorption rate is low it starts to turn into a sellers market. When it is high 6 months or more it is a buyer market. With their being only 4.3 month supply of homes in the first quarter of 2015 our market has turned in favor of the sellers.
So here in my opinion on what this data is telling me and what we are currently seeing in the real estate market in Farragut. Our market has seen great improvement in the last 12 months for sellers. We are seeing sellers who price their home correctly and have them in top market condition sell quickly. We are seeing some homes getting more than one offer on their home.