May was certainly an interesting month in the local real estate market. While much of the country, and world, are still experiencing the repercussions of COVID-19 in their markets, here in Rutherford County we saw the beginnings of an unbelievably swift market recovery. Below is a quick overview. Read on for a more in-depth look at the May 2020 Rutherford County real estate data.
While Rutherford County’s Closings were up in April, despite COVID-19, in May we saw the decline in Closings we predicted last month based on the April Pending data. However, what no-one could have predicted is the extent to which we corrected. Coming from a -22.53% deficit in April/May 2019 and -12.81% from March/April 2020, Pendings jumped +41.58% over May 2019, and an unheard of +47.76% over last year’s trend, the biggest jump we’ve ever seen in our local market.
Tracking the relationship of Pendings and Closings, our local market appears to be poised for a HUGE June. Typically, Closings run 2-3 weeks behind Pendings, with a spike towards month’s end. This year we saw that change in March/April as many contracts from a banner February and the beginnings of March fell through due to COVID-19’s impact. The 7-Day Averages from late April thru May suggest we’re now back on track, meaning the big month in Pendings we had in May, should translate to a big month in Closings this month. What remains to be seen is if the atypical May Pendings, which usually drop slightly between the normal April and June spikes, will just be pushed to a June lull this year. More than likely though, trends suggest our local real estate market may skip that end-of-school-year lull altogether. It appears Rutherford County is poised for a record month in June.
Regarding Supply, not much changed in May. Price points up to $500K remain in a Seller’s Market. In fact, for the most part they all dipped even further into a Seller’s Market. For example, there is currently only a 0.43 month supply of homes priced under $200K, down from 0.74 months supply last month. Even the upper end of those prices stay below a 3 month supply, with the biggest change being the $450-500K price range dropping improving from a 3.07 month supply to a 2 month supply. That’s fantastic news for anyone with comparable homes in those price ranges who may be considering selling soon, especially with interest rates hovering at historic lows. Meanwhile, the $500K-700K price points remain in a Balanced Market, meaning around a 4 month supply. Homes priced $700K+ continued their trajectory, slipping further into a Buyer’s Market, going from 7.44 months supply last month to 8.61 months supply this month. See more on that data at www.murfreesborohomesonline.com/data