The numbers are in through May 2008 and little has changed since the beginning of the year in the Rutherford County real estate market. We continue to hover at about 30 percent (currently 32.6%) for the year below last year’s closed sales with May coming in at 34 percent below 2007’s numbers.
There are, however, some numbers in the latest report that allow us to forecast the future somewhat. Not surprisingly, the total number of pending transactions in a given month are a leading indicator of the next month’s sales activity. In fact, since 2003 the Rutherford County residential real estate market has averaged monthly closed sales numbering about 93 percent of the previous month’s pended listings. When we see a rise in pendings, we will likely see a corresponding rise in closed sales the following month. In May 2008, pendings were off 35 percent compared to 2007.
Another number to watch is the gap between the average list price and the average closed price. In a buyers’ market like we are currently experiencing, the larger the gap, the longer the market will remain unbalanced. A high average list price with a low number of pendings means many homes are overpriced thereby driving away buyers. The homes that are priced properly for today’s marketplace (not priced to sell at last year’s higher prices) still sell quickly, leaving behind a stagnant inventory of picked-over listings with bloated price tags and way too many days on the market.
When the gap between the average list price and the average closed price begins to narrow, this will be a positive sign that new sellers have become more realistic about what the market will bring for their homes and the old inventory has begun to get cleared out through price reductions and expired or withdrawn listings.
Your home is one of the biggest investments you will make in your lifetime. Shouldn’t you trust that investment to a team who intimately understands the current real estate market and how it will affect both home sales and purchases? If you’re thinking of buying or selling a home, please consider interviewing the Jones Team to represent you in this important transaction.
Give us a call at 615-867-3020 or visit our website at JohnCJones.com.
