Franklin home prices rise 13.7 percent, midyear supply of homes swells
The median sales price of single family homes in Franklin, MA rose 13.7% in the first half of 2014 compared to last year. That’s the best showing for home prices in Franklin for the first half of any year since the end of the Great Recession.
Statewide, the median sales price of single family homes also was on the upswing.
Sales volume down
The number of homes sold in Franklin, Massachusetts during the first 6 months of the year dropped precipitously. The 26% decline in Franklin home sales volume from 2013 levels is partly attributable to the harsh winter weather during the first quarter of the year.
First half sales volume was also off across the Bay State as a whole, but only marginally.
Formerly tight supply of Franklin homes bulges at midyear
A major contributor to the large decline in Franklin home sales volume during the first half of 2014 was the restricted supply of homes available for purchase in town. The inventory of homes for sale in Franklin, Massachusetts was very limited for most of the first half of 2014.
However, the supply of homes for sale in Franklin has recently shot upwards. This July, Franklin is carrying 80% more homes for sale than it did last year at this time! Starting in April, 2014 there was an increasing number of homes for sale in Franklin, MA. By May, the trend became a noticeable surge in Franklin listings on the MLS. As shown in red in the chart above, the number of homes for sale in Franklin has remained considerably elevated for several months now.
While homes in Franklin are still selling, some asking prices are meeting resistance and a number of Franklin homes have sat on the market unsold. In fact, of the 22 single family homes in Franklin that were listed for sale on the MLS since July 1, only 5 have accepted offers as of July 15.
Sound advice for home sellers
This surge in listing volume and accompanying slowdown in the pace of home sales in Franklin can be read as a mildly cautionary tale for today’s home sellers: all markets, even those on the rise, are always in flux as buyers and sellers jockey for position. You need to constantly read market conditions in setting asking prices for houses. Too low and you can leave money on the table. Too high and your home can sit unsold for weeks (and sometimes months if you really misjudge relative values). If you overprice your home, you may end up selling for less that you could have gotten had you priced properly in the first place!
The prospective Franklin home seller’s best bet is to get a free, no-obligation Home Value Report from a broker who specializes in the Franklin market and who’ll price the home properly so that it sells . . . and does not sit!