January 2026 Franklin Market Report: Prices Up 11% as Market Balances

Market Overview

Franklin's real estate market kicked off 2026 with a fascinating paradox: home prices surged 11% year-over-year while sales volume declined 16%. This dynamic reflects a market in transition—moving from the frenetic seller's market of recent years toward a more balanced environment where both buyers and sellers have negotiating power.

With 96 total closings in January and a median sale price of $996,000, Franklin continues to command premium pricing. The average sale price reached $1,198,754, demonstrating the city's appeal to affluent buyers seeking top-rated schools, charming downtown amenities, and proximity to Nashville's employment centers.

The Shift Toward Balance

Perhaps the most significant trend is the market's evolution toward balance. With 5.37 months of supply—up from 3.88 months in January 2025—Franklin is approaching the 6-month threshold that economists consider a balanced market. This shift has tangible implications:

• Buyer Negotiating Power: 67% of homes sold below list price, giving buyers more leverage than they've had in years
• Longer Marketing Times: Average days to contract increased 39% to 82 days, allowing buyers more time to evaluate options
• Inventory Growth: Active listings rose 22% year-over-year to 358 homes, providing more choices

Price Appreciation Continues

Despite the cooling sales pace, Franklin's home values continue to appreciate robustly. The 11% year-over-year increase in average sale price reflects several factors:

• Limited Supply in Desirable Price Points: New construction remains constrained by land availability
• Strong Underlying Demand: Franklin's reputation for excellent schools and quality of life attracts buyers willing to pay premiums
• Luxury Market Strength: 11 homes sold above $2M in January, totaling $31.8M in sales volume
• Nashville Metro Growth: Continued job growth and population influx support housing demand

Price Distribution Analysis

The $1M-$1.5M segment dominated January sales, representing 31% of all transactions. This reflects Franklin's positioning as a premium market where median-priced homes now exceed $1M. The distribution reveals:

The scarcity of homes under $500K—just 9 sales in January—underscores the affordability challenge facing first-time buyers. Single-family homes at this price point are essentially unavailable, pushing entry-level buyers toward townhomes, condos, or neighboring communities.

Geographic Breakdown

Franklin's three primary zip codes showed varied performance:

The 37064 zip code (including popular neighborhoods like Westhaven, Avalon, and Bonterra) dominated with 68 closings, while 37069 commanded the highest average price at nearly $1.5M, reflecting its luxury estate properties.

What This Means for Buyers

If you're considering buying in Franklin, January's data offers encouraging signs:

• More Negotiating Power: With 67% of homes selling below list price, buyers have room to negotiate
• More Time to Decide: The 82-day average time to contract means less pressure to make rushed decisions
• Greater Selection: 358 active listings provide more options than last year
• Stable Financing Environment: Mortgage rates have stabilized, making budgeting more predictable

However, competition remains fierce in the $1M-$1.5M range, and well-priced homes in desirable neighborhoods still attract multiple offers. Working with an experienced local lender who understands Franklin's market dynamics is essential.

What This Means for Sellers

Sellers should adjust expectations based on the market's evolution:

• Pricing is Critical: With 67% of homes selling below list price, aggressive pricing may backfire
• Presentation Matters More: Buyers have time to compare options, so home condition and staging are crucial
• Expect Longer Marketing Times: The 82-day average to contract means patience is required
• Luxury Market Remains Strong: High-end properties ($2M+) continue to perform well

Looking Ahead

As we move through 2026, several factors will shape Franklin's market:

• Spring Selling Season: Historically strong March-June period may boost sales volume
• New Construction: Limited land availability will continue constraining supply
• Interest Rate Environment: Any rate changes will impact buyer purchasing power
• Nashville Metro Growth: Continued job growth supports housing demand

The transition to a balanced market represents a healthy correction from the unsustainable seller's market of recent years. Both buyers and sellers can benefit from this environment with proper strategy and expert guidance.