Franklin, Tennessee Home Prices in 2015 and 2016: Trends and Predictions

What are Franklin, Tennessee home prices doing right now? Are they rising or falling? And what are they expected to do over the coming months?

These are some of the most common questions among home buyers and homeowners. Home buyers, in particular, want to know if prices are rising because it affects their timing to make a purchase. Nothing motivates a buyer like the threat of rising prices!

So let’s take an updated look at Franklin, Tennessee home price trends for 2015 — along with a few predictions for 2016.

House Values on the Rise, According to Multiple Sources

According to the real estate information service Zillow, home prices in Franklin rose by 4.5% over the last 12 months (reported in June 2015). Their prediction for the next 12 months is more modest in comparison. The company stated: “Franklin [Tennessee] home values have gone up 4.5% over the past year and Zillow predicts they will rise 1.9% within the next year.”

Granted, this is their own proprietary method for measuring home prices (it’s called a Zestimate). So those numbers might not jibe with other predictions and forecasts. But it’s not the numbers that are important. It’s the broader trend that is taking place.

The two big takeaways from this and other predictions for Franklin, Tennessee:

(1) Home prices will likely continue rising over the next year or so.

(2) They probably won’t rise as much as they did over the last 12 months.

According to the Williamson County Association of Realtors, the median home sale price for Franklin rose 11% over the last year or so. The median price for homes sold in May of 2014 was $408,500. Last month, the median rose to $455,000 for a year-over-year gain of 11%.

You might wonder why Zillow reported a 4.5% annual gain in home prices for Franklin, while WCAR reported a gain of 11% during roughly the same time period. The reason is that they are different metrics. Zillow’s “Zestimate” is an estimated market value, computed using a proprietary formula. The median sale price reported by WCAR is the actual midpoint for homes that were sold over the last year or so.

But we’re getting into the weeds here. The bottom line is that home prices in Franklin, Tennessee rose considerably from 2014 to 2015. They are expected to continue rising over the next 12 months into 2016, but probably to a lesser degree.

What’s Driving the Home Price Gains in Franklin?

When house prices rise, as they have in Franklin, Tennessee, it’s usually the result of changes on either the supply or demand side of the equation. So what’s changing in Franklin? A little of both, actually.

Lack of inventory has increased competition among local home buyers. At the same time, we are seeing higher demand for housing due to economic improvements and a low-rate lending environment. Long-term mortgage rates have been hovering near 4% for many months now, enticing buyers into the market. Meanwhile, the economy has made great strides in terms of job growth and consumer spending. This puts more people in a position to buy a home, while giving them the motivation to do so.

So, we have limited housing inventory and high demand. These combined forces are putting upward pressure on Franklin, Tennessee home prices in 2015. This trend could continue into 2016, albeit to a lesser degree.

Disclaimers: This article contains third-party data and information that is deemed reliable but not guaranteed. It also contains forward-looking statements (predictions and forecasts) for Franklin home prices and real estate trends. Such statements are the equivalent of an educated guess and should not be viewed as financial advice.

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