The Rutherford County housing market continued to slow in August, following a similar path to July. Higher mortgage rates, growing inventory, and softer buyer activity are creating a market that
Is Murfreesboro Headed for a Summer Housing Boom?
Dated: April 9 2025
Views: 1533
March brought a renewed sense of energy to the Rutherford County real estate market. Even with some fluctuations in supply, pricing, and interest rates, there’s a clear sense of momentum heading into the warmer months. Here’s an in-depth look at the latest figures and trends shaping our local market:
Contracts and Closings
Contracts continued their upward trajectory, registering a 10.3% increase over March of last year and a 22.5% surge from February. This signals that buyer interest is strong and gaining steam.
Closings were down -8.4% year-over-year, but the good news is they jumped 29% from the previous month. Steady month-over-month growth suggests we’re moving toward a more active market.
Pricing Trends
Median price per square foot moved from $221 in February to $216 in March. Although slightly down month-over-month, this figure is 1.9% higher than last March’s $212.
The slight monthly dip may reflect short-term fluctuations in buyer preferences or inventory availability, but it’s encouraging that prices still remain above last year’s levels.
Inventory and Supply
Average Daily Inventory rose 46% year-over-year, bringing supply to 3.7 months. Though that’s a solid jump compared to 2024, it’s down -18.5% from the previous month.
Absorption rates (how long it takes to sell current inventory) are mostly steady. However, in the $500K–$550K price range, supply has surged to 4.74 months, hinting at a slight buyer’s market there.
Higher-end homes (the $700K+ range) currently sit at a 5.19-month supply, giving buyers at this price point more options to consider.
Interest Rates and Demand
We continue to see that when interest rates dip near 6.5%, buyers respond and contracts spike. This sensitivity underlines how crucial stable mortgage rates are in maintaining a strong pace of sales.
Despite price and interest rate shifts, buyer demand remains impressively resilient.
Looking Ahead
Inventory is now at its highest level since 2019, and with contracts and closings each climbing for two consecutive months, the market appears well-positioned.
While April often experiences a seasonal lull before summer picks up, the data points to a potentially strong summer—especially if interest rates hold near 6.5%.
Contracts are already approaching 2024’s spring high-water marks, which sets an optimistic tone for the coming months.
Rob Janson
Rob Janson grew up in real estate, with his family owning a successful independent brokerage in Bristol, Tennessee. Rob moved to Murfreesboro in 1997 to attend Middle Tennessee State University. After....
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The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange Program of RealTracs Solutions as distributed by MLS Grid. Real estate listings held by brokerage firms other than John Jones Real Estate LLC are marked with the Internet Data Exchange Program logo or thumbnail logo and detailed information about them includes the name of the listing brokers.
