In October, home sales in Rutherford County dipped by 8.5%, yet we saw a surprising 5.5% rise in pending contracts. Despite this, the median price per square foot remains stable, reflecting relatively steady home prices since April of this year. Listing inventory mirrors last year, maintaining a balanced housing stock. The seller’s market persists, with absorption rates slightly up but still under three months supply. Interest rates, which recently hitting a 20-year high, took an unexpected drop this past week, providing a timely opportunity for buyers. Federal considerations of delaying rate hikes, coupled with declines in oil, rent and auto prices, influenced this shift. Read on for our deep dive into the most recent local market data.
Market Performance Overview:
October saw a notable decline in sales, with a decrease of 8.5% compared to the same period last year. However, amidst this dip, there was an unexpected rise of 5.5% in pending contracts from the previous October, sparking interest and raising questions about the dynamics at play in the local housing market.
Median Price and Inventory Stability:
Despite fluctuations in sales, the median price per square foot has remained largely unchanged from the previous year. This suggests that, on average, housing prices have maintained stability and are not experiencing significant increases or decreases. Additionally, the listing inventory for October was comparable to the same period last year, indicating a relative equilibrium in the available housing stock.
Absorption Rates and Seller’s Market Dynamics:
While absorption rates have seen a slight increase, they remain under three months, affirming that Rutherford County is still a seller’s market. The persistence of low inventory levels underscores the ongoing challenge for prospective buyers in finding suitable properties.
Interest Rates and Market Response:
The surprising rise in pending contracts becomes more understandable when considering the recent fluctuations in interest rates. Despite hitting a 20-year high in the past few weeks, rates have seen a noteworthy drop, particularly in the last week, by 25 basis points. This is the most significant decline in the past 12 months, providing a glimmer of optimism for potential homebuyers.
Factors Influencing Interest Rates:
The recent drop in interest rates can be attributed to several factors affecting the broader economy. Notably, some indicators suggest that efforts to control inflation are showing signs of success. Decreases in oil prices and rental costs, coupled with a notable decline in car sales, have prompted the federal government to consider delaying further increases in the Federal Reserve. While not guaranteed, this potential pause has influenced market sentiment, leading to a drop in yields and subsequently contributing to the recent decline in mortgage rates.
Implications for Buyers:
For prospective buyers who have been patiently awaiting a more favorable market, these recent developments offer a glimmer of opportunity. The slight drop in mortgage rates provides some relief and may incentivize those on the fence to make a move.
Thank you for taking a few minutes to look at what’s going on in the Rutherford County, Tennessee housing market. If you are interested in staying informed about what is happening in the local Rutherford County real estate market going forward, please consider following @murfreesbororealestate on Instagram, TikTok & YouTube for more on market conditions and numerous other real estate topics. As always, if you need any assistance, you can always contact John Jones Real Estate at 615-867-3020 to put our LOCAL market expertise to work for you. It would be our pleasure to serve you.