Has the Bottom Fallen out of the Rutherford County Real Estate Market?
The media across the country as well as right here in Rutherford County has been full of doom and gloom about the real estate market. A recent article from The Tennessean (check it out here: http://www.tennessean.com/apps/pbcs.dll/article?AID=2007710100405) points out that the number of September home sales in and around Nashville is down 25 percent compared to the last year's September sales.
While this is not the news we'd like to hear, a little perspective is probably in order. We are coming off back-to-back record years in the Middle Tennessee real estate market as well as more than a decade of steady growth. Sooner or later the market had to slow down. The good news for us in Rutherford County is that because we didn't have double-digit annual price growth the last couple of years--like they did in Florida, California, Nevada, and Arizona--we are not suffering through tumbling prices like those other places while the market corrects itself.
For years, homes in the Rutherford County real estate market (including Murfreesboro, LaVergne, Smyrna, Eagleville, Lascassas, and Rockvale) have been steadily growing in value by about three to four percent annually. In the last year and a half, some areas have jumped up a little faster. Don't be suprised if prices correct slightly in those areas. However, overall, our market is strong and healthy and the Middle Tennessee economy continues to grow..
All of this doesn't mean that the current market is not without its challenges. Here are some things to consider:
For Sellers: Plain and simple, there is currently more supply than demand for homes, making this a Buyer's Market. What does that mean if you are selling your home? It means that every buyer who looks at your house has plenty of other options available if yours doesn't meet his wants or needs. If you are going to snag that elusive buyer, it is more important than ever to price your home aggressively and make sure it is in tip-top condition. During a Seller's Market, you can sell your house by pricing a little bit above what similar homes have recently sold for in your neighborhood because buyers are so plentiful, they fight over available homes, creating upward pressure on prices. When buyers are more scarce, like in this current Buyer's Market, the best way to get a contract on your home is to price it a little below what similar homes have recently sold for in your neighborhood--because now it is the plentiful sellers who are fighting it out, creating downward pressure on prices. If you don't price it right, the buyers will buy from someone who has.
For Buyers: If you've been waiting to buy, this is your time! Listing inventory is up across all values. In some market segments, it will take 18-24 months to clear out the available homes at current absorption rates. Get yourself a strong Buyer's Agent and find your dream home!
Whether you are thinking of buying or selling, the Jones Team is the market leader in Rutherford County Real Estate. In any price range; in any market, we have the knowledge, experience, and cutting-edge technology necessary to help you maximize your real estate investment. (Visit us here: http://www.johncjones.com/)