2nd Quarter 2021 Issue Full Report: RedReport-2Q-2021.pdf
The Red Forecast
Same old story; “low inventories pushing higher prices”. It looks like we could see lower sales volumes at some point locally due to lower inventories. Nationally, sales are already seeing a modest decline due to lower inventories.
Some believe we will see more inventory in the next few months due to more sellers willing to list their homes now that most pandemic worries are behind us and new construction starts should start to help with more inventory on the way. National lumber prices are starting to go down so that will entice some builders who were on the sidelines waiting for a lumber price break to start more homes.
Locally, we still believe that inventories will dictate sales volumes and it may take more time for inventories to increase enough to slow down price increases. Middle Tennessee continues to be VERY attractive to out-of-state homebuyers moving from other states with much higher home prices and state income taxes, so they are willing to pay premiums that continue to drive prices upward.
I hope everyone is enjoying their busy summer. We’ll keep everyone posted if we see any changes in a different direction and we’ll be back with another full report at the end of the third quarter.