If you listen to the national media you would think that the real estate market has absolutely collapsed and in some parts of the nation this is probably close to being true.  These were the same markets that were also experiencing 20-30% appreciation rates the last 5 years (sounds similar to the internet bubble in the late 90's).  Here in Rutherford County the market has definitely softened but nowhere near the levels of much of this country.  In fact, where many markets are actually experiencing depreciation of upwards to 30% (as in the Florida market).  Rutherford county prices have actually still risen in the past year.  I do think this will change in the coming months as we sell off our overbuilt inventory. 

I spoke with a fellow real estate professional in a Florida market last week and he informed me that they had a 4 year inventory of homes on the market in his county.  In comparison in our upper end market of $300-400,000 we have a 9-10 month supply of homes, with 6 months being a health market.  Our problem was simply created by an overabundance of $50-60,000 building lots all coming on the market at one time 18 months ago.  The lot starved builders at that time swallowed them up and started putting out spec houses quicker than you can say "over saturation".  Also, at this time labor costs and construction costs were at all time highs.  The result is a surplus off $300-400,000 homes that we are still trying to absorb.

However,  the $250,000 and under market in Rutherford County is very heatlhy with an absorbtion rate of less than 6 months in most areas.  This has created a great environment for the family who owns in this price range and is thinking of moving up.    It's a lot like the movie "The Perfect Storm", if you remember there were a variety of random acts of God that all came together at the exact same time to create a devastating storm which created these 100 foot waves.  Unlike the movie, where the boat sinks and everybody dies, this perfect storm is actually a great opportunity for a seller in this $250,000 market. 

Just last week we had a seller who sold their $225,000 home in 3 weeks for 98% of list price and went out and purchased a new construction home for $330,000 which was listed for $359,000 and this home probably would have brought close to the asking price 18 months ago.  The builder like many in the market right now just wanted this property off his books.

So even though the media is telling us daily how bad it is here in Rutherford County there truly are some great opportunities to take advantage of.  If you are in this same situation as the family I've mentioned do not let this perfect storm pass you by.  You may have a chance to build $20-30,000 in equity almost overnight.

Give us a call or drop us an email if you'd like to discuss your unique situation.