The September housing numbers for Rutherford County are in, and this month has been an interesting one. While certain trends follow what we’ve seen in previous months, there are a few standout figures that require a closer look. Let’s dive into the data and explore what’s going on in the local market.

September saw a 6% drop in closed sales compared to last year. At first glance, this might seem like a sign of a market slowdown, but there’s a twist. Pending sales, or homes under contract, surged by 19% compared to last September. So, what’s driving these conflicting numbers?

Interest rates played a significant role. Over the past month, mortgage rates dipped slightly, which brought more buyers into the market. However, even with more people showing interest, not all of them are closing deals.

One of the most notable shifts is in the inventory. Rutherford County now has 1,182 residential units available, marking the highest level of inventory since February 2019. This increase in available homes is contributing to a more balanced market, currently at a 3.21-month supply of homes.

Despite rising inventory and a decline in sales, the median price per square foot rose by $11 compared to last year. In fact, it reached $222 per square foot, tying with the all-time high from June 2022.

What’s behind this price increase? A key factor is the shift toward new construction homes. Builders are now focusing on smaller homes to keep overall prices lower, making properties more affordable for buyers. However, smaller homes mean that the price per square foot increases. It’s worth noting that this trend doesn’t necessarily reflect what’s happening with existing homes, where prices have remained relatively flat.

With more homes available, buyers have more options, and sellers need to be more strategic. Homes that are priced correctly and in good condition are still selling quickly. The average days on the market for homes that do sell remain at 25 days, which is consistent with last year’s numbers. However, sellers can no longer afford to “reach for the stars” with their asking prices. Pricing a home appropriately has never been more crucial to ensure a sale.

Many people have their eyes on interest rates, particularly after the Federal Reserve’s rate cut of half a point last month. However, it’s important to remember that mortgage rates are tied to the 10-year treasury bond, not directly to the Fed’s actions. Mortgage rates have been fluctuating, easing down at first, but recently rising by about a quarter of a point.

If you’re thinking about buying or selling, the key takeaway from September’s data is this: the market is still strong, but it’s more competitive than before. Buyers can benefit from more choices with increased inventory, while sellers need to focus on realistic pricing to get their homes sold quickly.

As always, 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.