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Shrinking Inventory Still Driving Prices Upward

In August, the Rutherford County housing market saw a slight slowdown in transactions compared to last year. However, shrinking inventory is causing prices to continue trending upward. We’re currently only 4.4% off the record number ($225 Median Sale Price Per Sq.Ft.) posted last summer. If rates continue to ease back down, we foresee a surge in market activity causing local home prices to quickly skyrocket to new heights. Read on for our in-depth look at the most current local market statistics. 

Last month we saw closings fall by 8.51% compared to last August. Pendings, which refer to properties under contract but not yet closed, have also seen a similar decrease. Contracts were down 9.82% from the same period last year and 8.38% from July. We’ve now seen five consecutive months of decline in pendings. These two metrics together suggest a slowdown in market activity despite immense buyer demand, likely due to peaking interest rates.

Despite the decline in closings and pendings, the median sales price per square foot is actually up month over month, now at $215. This only -1.38% off last August and -4.4% off the record of $225 we saw in June 2022. This means that home prices have remained relatively stable over the past year. It’s a piece of positive news for homeowners and potential sellers, indicating that the market hasn’t seen a significant drop in property values amidst volatile mortgage interest rates. 

The most crucial indicator in the current Rutherford County housing market is the inventory, or lack thereof, currently sitting at a 2.32 months supply of homes. This figure is critical because it represents how long it would take to sell all the homes currently on the market at the current rate of sales. In a balanced market, a 4-6 month supply is typical. With only 2.3 months of supply, Rutherford County remains in a strong seller’s market. All signs suggest that when interest rates dip a percentage point, whether it be this year or next, pent up buyer demand will again fuel historic price appreciation in short order. 

Keep in mind that the real estate market is constantly changing, so staying informed about data and trends will help you make informed decisions on your housing journey. Whether you’re looking to buy a home at a stable price or considering when to sell your property, these insights provide valuable guidance. We’ll be back next month with more. In the meantime, we invite you to stay informed about local real estate trends. Please consider following @murfreesbororealestate on InstagramTikTok & YouTube. 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. 

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John Jones

During his 30 years in real estate, John has helped more than 7,500 families handle their real estate needs. Nobody has sold more homes in Rutherford County than John and there is not even a close second. Before opening his own brokerage, John Jones was a perennial top producer for Coldwell Banker from 1998 to 2008, consistently ranking among the top 1% of agents in the nation. In October of 2008, John realized his vision of a small boutique real estate firm that offers the best in customer service, market knowledge, wealth building opportunities, and innovative techniques that get homes sold. Offering several revolutionary programs to his clients such as the Guaranteed Sale Program, Instant Offer, and the Fixer-Upper program, John and his team continue to perennially set production records, with 560 units sold and over $185,000,000 in volume in 2020. Those numbers again put the company's agent average at the top of both the Rutherford County and greater Nashville rankings.

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