News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Putnam County’s real estate market inventory is lower than expected despite an increase in construction permits issued.
That according to a recent report from County Executive Randy Porter.
Local realtor Donna Poston Grider said there could be several reasons as to why fewer homes are available in the area.
“We’ve got more buyers than we have homes available, so when a home does come on the market, it’s usually already under contract,” Grider said. “I don’t know if [sellers] are just sitting on their homes to see what the market’s going to do. Right now it’s a seller’s market, but the interest rate is going up, so it’s going to knock some buyers out of buying a home because it’s all about the monthly payment.”
Porter said last week 209 of the county’s 339 total construction permits were issued to build single-family residential homes during the 2017-2018 fiscal year, up from 176 the year before.
Jeff Jones is the owner of American Way Real Estate in Cookeville. He said it’s unclear if inventory will be able to rebound to previous numbers due to development in the county.
“The available property for development inside the city is not as plentiful as plentiful as it once was, or even in close proximity to town,” Jones said, adding raw land to develop is scarce as well. “The available property is just not there.”
A better economy could also be an impact, as Grider said more buyers means more people are eligible for mortgages in the area.
“When 2008 happened, a lot of people couldn’t afford a mortgage,” Grider said. “Now they’re starting to loosen up some of the mortgage qualifications. So people are coming back in to the market. They’re able to afford a mortgage.”
Grider said a low inventory could impact those selling their homes as much as the ones looking at buying.
“If you’ve sold a house, you’re going to have to turn around and buy one,” Grider said. “You’re best hope would be to sell high and buy low. But because the inventory is so low, that doesn’t happen.”
Jones said easy access to newer apartment complexes in and around Cookeville could also impact the homeowners looking to sell.
“A lot of folks are choosing to rent, but your upscale apartments, the rent’s higher than a mortgage payment would be… but it doesn’t seem to be slowing the housing market down,” Jones said.
