Housing Statistics West TN Buyers and Sellers Should Know

Housing Statistics West Tennessee Buyers and Sellers Should Know

If you're looking to purchase or sell a home in West Tennessee, then it's crucial to understand the housing market and the published statistics about it. The housing market is ever-changing, so it's crucial to understand the most up-to-date information that is available

We are well into 2023, but for now, The National Association of Realtors has only published the data from the 4th quarter of 2022. Let's discuss what we know about the housing market in West Tennessee, using the information that the National Association of Realtors has published.

The State of the Market in 2022

Housing Costs

The median cost of a home in West Tennessee is $254,000. This is a little more than $100,000 less than the median cost of a home in the United States, which is $372,667. In quarter 3 of 2022, the median price of a West Tennessee home increased, but in quarter 4, the median price went down by a small percentage.

Equity Accrued

Homeowners in the United States have gained an average of $21,777 in equity on their homes in quarter 4. However, the figures in West Tennessee differ greatly from this average, as the average homeowner in the area has lost $1,832 in equity. This should not be too alarming of a statistic, as this figure is directly related to the steady post-recession home equity market and will likely change.

Local Economic Outlook

The housing market is directly correlated to the employment and economic outlook in the West Tennessee area. The current rate of unemployment in West Tennessee is around 3.7%, while the national average is 3.5%. in 2021, the unemployment rate was 4.2% in West Tennessee, and the national unemployment rate was 3.9%.

Although the unemployment rate in both West Tennessee and the country as a whole is decreasing, the job growth rate is concerning in West Tennessee. The 12-month job growth rate is 2.4% in West Tennessee, so we could benefit from this figure increasing.

New Housing Construction

The 12-month summary of new 1-unit building permits in West Tennessee reports that there were 3,510 permits obtained in the area. This is about 5.4% above the area's long-term average, which means that more people are building than expected.

However, new construction projects that focus on building single-family homes are decreasing. There has been an 18.1% decrease in the amount of single-family homes that have been built in 2022 when compared to the year prior.

Affordability

Oftentimes, West Tennessee homes are considered more affordable than most other homes in the United States. This remains true, but still, mortgages in West Tennessee are a little bit less affordable in 2022, when compared to past years. The mortgage payment to income ratio is historically 8.7% in West Tennessee, but in 2022, this figure was 11.7%.

When compared to the national average, which is 17.8%, and the United States' average figure in 2022, which is 23.3%, West Tennessee homes are very modestly priced.

Mortgage Prices

As we might expect, mortgage prices were on the rise in 2022. There was a slight dip in mortgage prices starting in 2019, but as we entered into the beginning of 2022, the prices began to rise and continued to rise throughout the entire year.

How Have Things Changed in 2023?

We have a lot more information about the market in 2022, but we do have some information about how the real estate industry is faring in 2023. As of April 2023, the median list price of homes in West Tennessee was $189,900. This number is just above the median sold price of homes in West Tennessee, which was $186,250. However, these numbers vary drastically depending on the neighborhood.

Moreover, the average number of days that a home was on the market in April 2023, was 35. This figure shows that homes are selling quicker than they were in 2022. Finally, in April, there were 2,543 homes up for sale and 1,546 homes available to rent. 

Total Realty Source Can Help

These figures can be complicated to figure out when you're in the process of selling or buying your home. If you're looking for clarity, then Brandie Bassett, a local Realtor, can help. In order to be as confident in the home buying and selling process as you can be, it's important to find a realtor you can trust. For more information about the West Tennessee housing market, contact me at 731.695.2785 or 731.574.9340.