Murfreesboro TN Homes Inventory is Down and Sales Are Up! It’s been a long four years. But make no mistake, the Murfreesboro TN Real Estate market is in recovery! There are three factors that are fueling this recovery and laying the foundation for home prices to start trending up.
The first is that our housing inventory has dwindled. Gone is the glutton of spec homes available from builders. New homes are becoming uncommon unless a buyer wishes to custom build. There are currently 106 new homes listed for sale in the Murfreesboro city limits and many of those listings are for homes "to be built" but are not under construction. Existing homes listed for sale have also decreased. In September 2010 there were 970 homes for sale, compared to September 2011 there were only 853. That is a reduction in inventory of almost 13%. Real estate prices have always been driven by supply vs. demand. Fewer homes means rising prices and more competition between buyers for the premium listings.
Second, the dramatic drop in home prices has made homes more affordable than ever before. Murfreesboro TN homes have already experienced the worst drop in value. The average closed price for a home in the Murfreesboro city limits in September 2007 was $197,179 compared to $158,533 in September 2011. While there is no guarantee that home prices will not drop further, they simply can’t go much lower. No one knows the exact bottom of the real estate market, but it certainly appears that we are close to it with the current prices.
This chart shows that the active inventory is at its lowest in five years. However, the number of home closed has increased. This will support home prices trending upward.
Third, home mortgage rates have never been lower. Mortgage rates are below 4% for a 30 year fixed rate mortgage and have been 3.25 for a 15 year fixed rate loan! The housing market has never experienced rates this low. Add the historically low rates with the historically low home prices and you have the ultimate opportunity for home buyers. The National Association of Realtors calls this the Golden Era of Homeownership.
These three factors are beginning to lure home buyers off the fence. As buyers begin to close on the remaining inventory and become homeowners, the prices will slowly begin to rise again. According to the latest market reports I compiled for various areas, such as Bradford Place and Regency Park zoned for Oakland High School in Murfreesboro TN, and Westfork Subdivision in Smyrna TN, we have several communities that are already in a seller’s market! While the home prices are lower than they were a few years back, the supply of homes is less than 6 months which determines that area is in a seller’s market and home price will be trending up!
This information is especially important for home owners that wish to sell their current home and move up into a more expensive home. They can capitalize on the sell of their existing home and purchase the home of their dreams which may be in a more depressed buyer’s market. If you would like to know what the supply of homes is for YOUR specific neighborhood, just give me a call!
Don’t buy expecting home prices to sky rocket and make huge returns on your purchase in the short term. Those days are gone for now. Keep in mind that your monthly budget includes a housing expense and your expenses will be lower by purchasing a home regardless of how much home prices increase. Read my blog You’d Be Crazy - LIKE A FOX - To Buy A Home Now! This blog discusses information from sources like CNN Money Magazine that confirms it is cheaper to BUY than rent! Your monthly housing expense will be lower if you purchase your own home. In addition, you will get the benefit of a tax deduction, and the high probability of building a steady increase in long term equity.
Most importantly, appreciate that you will be buying a house that will be your own; a house that will be your home.
Your story begins at home.