Housing Leads the Way

The housing market defines the economy, so how's Murfreesboro housing market?  Comparing May 2008 to May 2012, the average price per square foot of existing homes has fallen from $99/sft to $80/sft, but sales have increased from 58 to 95. The lowest price per square foot was last fall, when homes were selling in the mid $70's/sft.  It would appear we're heading out of the housing slump...

2011 Sales vs 2005 Sales

Almost 2 months into 2012 and the real estate market in Rutherford County, TN is "a movin' and shakin'"!  Interest rates are still very low and prices have not started to rise yet, so it could not be a better time to buy a home.  Sellers, too, should take heed since the inventory of homes is very low.  Fewer homes on the market means less competition for sellers, and a better chance that their home will sell.

Businesses in middle Tennessee are hiring (Nissan's production of the new Leaf) and new companies are moving or expanding (Bridgestone and Amazon.)  As a result, the city of Murfreesboro has fared better during this economic downturn than many other areas across the country.  However, I did find the following sales statistics of the past few years very sobering:

    Year                   Total homes sold                      Year            Total homes sold     
    2011                         2072                                  2004                   3584
    2010                         2184                                  2003                   3291
    2009                         2338                                  2002                   2814
    2008                         2485                                  2001                   2540
    2007                         3489                                  2000                   2419
    2006                         3832                                  1999                   2472
    2005                         3970                                  1998                   2452

In 2011, 2072 total homes sold.  In 2005 (our market peak), 3970 homes sold.  Read that again....  Last year half as many homes sold than at the height of the market.  It is no wonder so many agents, builders, and title companies could not weather the storm.  In 1998, 13 years ago, the total number of sales was almost 2500.  That is 25% more than last year. 

It is still too soon to tell if the rush of activity since January 1 is just a blip on the downward trend or a true reflection of the housing market's crawl out of the hole.  January 2012 saw the exact same number of sales as January 2011, 129, which by itself does not sound encouraging, however that is an increase over the past 4 years.  And since I'm one who sees the glass half full, I'll venture to say the market is getting stronger every day.

Sellers--NOW is the time to list!

Are you ready to test the real estate waters?  Well, jump on in!  The graph below shows there's no better time!  Sales have been steady overall since March 2011 and THAT'S something to get excited about!  No big peaks or valleys like we saw with the stimulas package and recession reports.  Just steady sales, like the little engine that could.

On top of that, the graph shows the number of new listings coming on the market is still declining, which takes us right back to the number one rule of economics-- supply and demand.  Fewer homes to choose from, great news for sellers.  Sellers still have to clean, paint, declutter, and make their home shine, but there's a better chance they won't get lost in a sea of homes.

Ready?  Call me, and let's go for a swim!