In June, we saw some shifting in the local Rutherford County real estate market. Most notably Active Listing Inventoryhas jumped 42% from the previous month. Meanwhile, 15.9% of listings reduced their prices in the past 7 days, an average of $14,000. Read on for our in-depth look at the most current Rutherford County real estate data.
In June, Listings Added were up +5.91% from last year, marking two straight months of upward movement. Inventory also rose with Average Daily Inventory up +28.89% from last June and +24.15% from this May. Contracts, which were up +9.15% last month, dropped -12.04% from last June and -15.50% from last month. Closings also took a modest hit, down -7.92% from last year, but up +5.81% from last month, making two straight months of improvement, but with Contracts down we expect to see Closings decline slightly in July.
Looking at seasonal Inventory curves, we’re seeing Active Listings approach an intersect with their 2020 decline. We’ve seen significant improvement since the February record low of only 165 Active Listings, with a +42% increase from just a month ago. Prior to the onset of COVID seasonal Inventory trends tended to look relatively similar yearly after the local market recovered from the 2008 crash. So does this mean our market is headed for another crash? It’s very unlikely. We’re seeing prices begin to soften from the exponential growth we’ve been seeing, however not enough to offset the record price growth of the past two years. We have seen two straight weeks where Price Reductions of Active Listings are significantly up, 15.9% of Active Listings dropped their price last week, 12.9% the week prior, both an average of -$14,000. This while Median Sale Price held even with last month at $425K. Average Sale Price jumped +5.31% month-over-month, but with a new record sale for Rutherford County of $9.3 Million that number is skewed mores than normal.
Demand is still outpacing supply in all price points as we see below. In June, Supply did rise in nearly every price point except $400-450K and luxury homes $700K+, with many price ranges seeing considerable increases now for two straight months. Remember though, we consider a Balanced Market to be 4 Months Supply, so not even the luxury ($700K+) market is balanced just yet. But with Inventory continuing to rise, along with interest rates slowing demand, we expect we’ll be back in a Balanced Market across most price points by year’s end.
Looking at Mortgage Interest Rates, currently a 30-Year Fixed Rate Mortgage is averaging 5.7%, up from last month’s 5.09%, but down -0.11% from last week, the highest rate we’ve seen since 2009. Prior to that rates spent nearly a decade hovering around 6% which was considered pretty good having come from three decades with rates at 7% and higher. Where are rates headed? While it’s hard to say for certain, we do expect them to continue rising through year’s end, so we’re encouraging our current buyers to lock in their rates now.
If you are a buyer looking to find your new home in our rapidly changing local market, or a seller looking to take advantage of John Jones Real Estate’s LOCAL market expertise to sell your home faster & for more money, please give us a call at 615-867-3020. It would be our pleasure to serve you.