In August, we saw Contracts & Closings both drop double digits year-over-year, but both did tick up from the previous month. Inventory is stabilizing, but the biggest thing to watch in our local market remains the relationship between rising Supply & softening Home Values. Median Price Per Sq.Ft. in Rutherford County is now down for the second straight month, currently sitting at $218/Sq.Ft., down 3% from the June peak of $225/Sq.Ft. Read on for John’s deep-dive into our proprietary Rutherford County market statistics.
In August, Listings Added were down slightly year-over-year in Rutherford County, ending a three month run of YOY Inventory improvements. But with Contracts down -15.95% and Closings down -25.43% we saw the net effect of a +66.05% improvement in overall Average Daily Inventory. Why the sudden slowdown in buying activity? Well, skyrocketing Mortgage Interest Rates essentially paralyzed the marketplace as buyers waited to see what rates would do. More on that later.
Month-to-month Inventory improvements do appear to be slowing, with Average Daily Inventory up less than 10% from the previous month, where it had seen a 24% or better improvement for three straight months. This all as we approach fall/winter when Inventory typically seasonally dips until Spring.
Looking at everyone’s favorite subject, Home Values in Rutherford County had their second straight month of decline, now down to $218/Sq.Ft. (Median), a 3% dip from their June peak of $225/Sq.Ft., a trend we expect to continue for a few more months. But remember, as the last decade ended prices were hovering in the $140/Sq.Ft. range, then suddenly skyrocketed 60% since January 2020. So the softening housing prices are really aiding a much needed market correction, the exact effect the Federal Reserve intended as they attempt to hedge inflation.
Supply, while steadily improving, is still being outpaced by demand with only 1.9 Months Supply of homes currently on the market in Rutherford County. Absorption Rates across the various price points fluctuated wildly across the board this month, but the only significant change was in the $550-600K price point, which has now dropped from a 2.43 month supply to a 1.80 month supply. So overall we’ve seen a massive improvement from February’s record low of 0.9 Months Supply, but we’re still a long way off from a Balanced Market, which we consider to be 4 Months Supply locally.
Looking at Mortgage Interest Rates, currently a 30-Year Fixed Rate Mortgage is averaging 5.66%, up from last month’s 4.99%, but still an improvement from the June peak of 5.81% peak, the highest interest rate since 2009. One item we’re watching for as a result of the recent rate spikes is a rise in activity on Assumable Mortgages, a relic of the past that may now be a viable option for FHA buyers with a lot of cash. For more on that be sure to tune into our edutainment series on our social media channels. If you don’t already follow @murfreesbororealestate on Instagram and TikTok, please consider subscribing!
As always, 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.