August brought more of the same for the Rutherford County real estate market. Mortgage Interest Rates are hovering at all-time lows. Homes are selling for more than ever, and inventory is becoming scarce. Read on for our in-depth look at the August 2020 Rutherford County real estate data.
New Listings were down -7.80%% over last August, while Contracts were up 36.72% and Closings up 4.87%. The good news for sellers is the Spring/Summer’s hot market has led to a major inventory shortage, pushing Absorption Rates even further into a Seller’s Market.
We did see a fairly drastic change in Supply this month. While the $700K+ and $550-600K price ranges trended back towards a Buyer’s Market, the other price ranges all continue diving deeper into a Seller’s Market. Most notably the $300-350K price range dipped all the way to 0.56 months supply. Bringing everything priced under $350K to under a month’s supply of inventory, and allowing sellers to demand a premium for starter and mid-range properties. This adding to our already “perfect storm” for sellers to move up to their dream home, with homes selling at record high profits in Rutherford County, but rates making monthly mortgage payments extremely affordable by comparison on the buying end.
Employment in RuCo was again markedly improved from the COVID-19 unemployment spike. According to the U.S. Bureau of Labor Statistics, we’re now at 9.1% umemployment, and back below the previous 30-year high of 2009.
Mortgage rates have remained flat, hovering at record lows throughout August. However, there are some interesting compositional shifts with the 10-year Treasury rate increasing over the past month while mortgage spreads declined. Those spreads may decline even further, but the rise in Treasury rates may make it difficult for mortgage rates to fall much more this month.
The bottom line is, if you have considered making a move, NOW is the time. Inventory may be scarce, but that is good news on the seller’s side, and rates are making your dream home more affordable than ever.