November brought some intriguing developments in the Rutherford County real estate market. Most notably we saw a sharp decrease in mortgage interest rates. If interest rates continue their downward trend, reaching the sixes and possibly the fives, it will likely result in a surge of buyers entering the market. The issue we're facing is the current lack of inventory will not support that increased demand. With only 900 residential units currently available, our local market is poised for steep increases in home prices this coming spring and summer. Read on for our in-depth look at the most current local market data. Sales: In terms of sales, there's positive momentum. Closed sales saw a 3.45% increase over last November and 6.56% increase since October, indicating a healthy market. Pending sales remained steady, with just a 1.22% decrease from November last year. These numbers suggest a resilient market with consistent buyer interest. Home Values: The median price per square foot has remained unchanged from both last November and last month. This stability over the past twelve months provides some reassurance in a dynamic market. But make no mistake, we do expect the values to begin to rise again as we enter the new year if interest rates remain favorable. Inventory: Supply of homes on the market has seen a slight decrease from 2.95 to 2.75. Seasonally this isn't uncommon, as we've seen this trend hold true for at least the past five years. Typically there's an uptick in listings after the holidays, just before a February lull leading into the peak spring/summer seasons. We're still in a strong seller's market across most price ranges, with only homes priced $700K+ showing absorption rates above four months. Even those luxury listings are still firmly sitting in a balanced market at 4.03 months supply. With approximately 900 residential units for sale in our local real estate market, the limited inventory continues to be a driving force in prices holding steady. Interest Rates: The standout news revolves around interest rates, with a substantial decrease in the last 30 days. FHA rates are now at a tempting 5.99%, and conventional rates are equally attractive at 6.99%, both with good credit and only one point. This drop could have a significant impact on the real estate market, potentially opening doors for more buyers. Increased Loan Limits: Meanwhile, the FHFA just increased the 2024 conforming loan limit to $766,550, a 5.56% boost from last year. For buyers, this means greater affordability with lower down payments. For sellers, this opens up more opportunities as buyers qualify with less cash to close. This will increase competition and therefore prices as well. If you're considering moving up, the higher conforming loan limits mean you may be able to remove a home sale contingency, making your offer more attractive. As we close out 2023, the housing market in Rutherford County is marked by favorable interest rates, positive sales trends, and a stable median price per square foot. However, the limited inventory remains a key challenge, and the potential for rising interest rates could impact future market dynamics. If you're considering entering the real estate market, now might be a strategic time to explore your options. 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. 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.