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Strong Buyer Demand Amidst Shrinking Inventory

The May housing numbers are in for Rutherford County, and it looks like we’re seeing a similar trend as last month. Closed sales were down by 20 percent compared to the previous year in May, similar to what we saw the month prior. However, the good news is that pending sales only dropped by five percent compared to last May. Here’s what’s interesting: despite the lower number of sales, inventory isn’t really improving. Read on for a more in-depth look at the most current local market data.
 

The housing market in Rutherford County is experiencing fewer transactions compared to the same period last year. However, the shrinking inventory suggests strong buyer demand. Traditional home sellers, who would typically move up or down in a normal market, are staying put, likely due to the reluctance to give up lower-rate mortgages for higher-rate ones. Here’s a few highlights of this month’s local market comparison.

  1. Sales: In May, closed sales were down 20 percent compared to the previous year, similar to April’s figures.
  2. Pending Sales: The number of pending sales showed a smaller decline, down only five percent from May of the previous year.
  3. Inventory: Despite lower sales, the inventory continues to shrink, down by 10 percent compared to the previous month.
  4. Median Price per Square Foot: A notable observation is the increase in median price per square foot, which rose from $211 to $213. Last year, in June 2022, the peak price reached $225, while it dropped to $205 in December.
  5. Absorption Rates: Absorption rates have decreased from 2.5 months to 2.3 months, indicating that it is still a seller’s market.

What’s the big picture? Well, the big story is we’re seeing fewer transactions compared to last year, but inventory is still shrinking. The continued demand from buyers is causing values to keep trending back upward, as is typical in a seller’s market. It remains a fantastic time to sell a home, but it’s crucial you work with an agent who truly understands the local real estate market. This will ensure that you not only get top dollar for your current home, but that you also have more options on the buying end when it comes to off-market homes, negotiations, and financing options. 

If you’d like to stay informed about local real estate trends, consider following @murfreesbororealestate on InstagramTikTok & YouTube. 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.

One Response to “Strong Buyer Demand Amidst Shrinking Inventory”

  • Stephen Salter
    Written on

    This is always fascinating information. I would add that downsizing is particularly difficult in this market as prices at the bottom of the market came up much faster than the mid market.


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