In December, Rutherford County’s real estate market completed its record year, propelled by low mortgage interest rates and unprecedented buyer demand in middle Tennessee. Closed Sales were up 9.52% over 2019, the previous record year. December numbers were also up comparatively, with Contracts up 27.94% and Closings up 16.46% over last December. Inventory hit yet another all-time low, with Average Daily Inventory now down -52.42% from this time last year. Read on for an in-depth look at the most current local market data.
As we enter 2021, Inventory continues to be the biggest issue in the local real estate market. Average Daily Inventory is now at 579 residential listings, down -52.42% compared to last December, and a new record low. This makes the current market amazing for Sellers, but often frustrating for Buyers looking to take advantage of what continue to be historically low interest rates. In fact, Mortgage Interest Rates hit a new record low the first week of 2021. Freddie Mac just reported an average interest rate of 2.65% on a 30-year fixed rate mortgage. If you are looking to purchase in the current climate, you MUST be ready to pull the trigger with the best possible offer as soon as the right home hits the market. The Inventory shortage is magnified by the continued slowdown in New Listings, which were down another -10.22% from November. The good news for Buyers is Contracts were down -14.01% from November, which may mean we’ve finally seen Inventory bottom out. That remains to be seen, as we close in on a full year of operation amidst the pandemic.
Regarding Supply, December saw more of the same, with a Seller’s Market across the board. Not much new to report there. It’s an unbelievable time to be a Seller in middle Tennessee’s real estate market. And if you are a Buyer, a Realtor® with expert knowledge of the hyper-local market is key. We’ve always said “real estate is local,” but now it is very much hyper-local. You almost have to have an inside line on properties that are coming to market, before they hit, in order to have success in purchasing.