Franklin Real Estate Market Update – February 2025

The Franklin real estate market remains strong, with home prices continuing  to rise and inventory levels holding steady. However, homes are taking longer to sell, and the market is gradually shifting toward a more balanced environment.

Key Market Trends

• Home prices continue to trend upward, but with fluctuations.

  • The median sale price in February rose 2% year-over-year to $1,080,000, up from $1,058,426 in February 2024 and $927,450 in February 2023.
  • Over the past two years, prices peaked at $1,087,500 in January 2025, and $1,077,500 in September 2024, showing recent strength in the market.
  • There have been price dips along the way, notably in July 2024 at $894,250 and August 2023 at $909,345, illustrating some seasonal softening before rebounding.

• Inventory remains steady, but active listings are increasing.

  • Total inventory stayed nearly the same, moving from 519 homes in February 2024 to 517 in February 2025.
  • Active inventory (homes still available) increased 13.4%, meaning buyers have slightly more options than a year ago.
  • Homes under contract declined 15.1%, which suggests buyers are taking a bit longer to commit.

• Homes are taking longer to sell.

  • The average days on market increased 21.9% year-over-year, from 32 days in February 2024 to 39 days this year.
  • This shift indicates that while demand remains strong, buyers are being more selective, and sellers may need to adjust expectations on timing.

• Months of supply is gradually increasing.

  • Inventory has risen slightly from 3.56 months in February 2024 to 3.75 months this year, signaling a slow shift toward a more balanced market where buyers have a bit more negotiating power.
    

What This Means for Buyers and Sellers

For buyers, the increase in active inventory and longer days on market mean less urgency and more opportunities to negotiate. The steady price growth suggests that waiting too long could still mean paying more later, but buyers have a little more breathing room compared to last year.

For sellers, pricing and presentation are becoming more important. While home values are still rising, the market is no longer at its peak frenzy. Well-prepared, competitively priced homes are still selling, but those priced too aggressively may sit longer.

Franklin remains one of the most desirable markets in Middle Tennessee, but as always, neighborhoods and price points behave differently. If you're thinking about buying or selling, let's connect and talk strategy to make sure you’re positioned for success.