Is Murfreesboro Housing Inventory Tight Right Now?

Inventory is falling seasonally, sellers are adjusting pricing, and builder permit trends may matter more than most people realize. Here is what the latest Rutherford County numbers are telling us.

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Weekly Rutherford County Market Snapshot

Over the past three months, 1,241 homes closed in Rutherford County. That leaves the market around a 3.3 month supply, and a little over 5.5 percent of homes on the market went under contract this week.

Where Inventory Is Tight and Where It’s Building

This is why some homes move quickly while others sit longer and need price adjustments to get attention.

New Listings and Pending Sales

After last week’s unusual spike from new construction, listings returned to a more typical seasonal level. This week had 63 new listings versus 68 last year.

Pending sales were slightly higher than last week, but still lower year over year. Last year, the same week had 88 pendings. This year it was 77.

Why Inventory Often Drops This Time of Year

Available inventory has been trending lower, and that is typical heading into the end of the year. You have to go back to mid May to find a time when there were fewer homes available than we are seeing now.

Based on seasonal patterns, it would not be surprising to see inventory drift lower after the first of the year. Lower inventory does not automatically mean a strong seller market, but it does help explain why prices have not dropped as much as many expected.

Mortgage Rates and the Fed

The Fed lowered rates by about a quarter percent, but mortgage rates did not drop with it. The 30 year fixed rate moved slightly from 6.19 to 6.22.

Jerome Powell also pointed to a bigger issue. Housing supply remains low, and small changes in rates may not fix that by themselves.

Why Inventory Stays Tight: The Lock In Effect

Many homeowners are locked into very low interest rates from prior years. Even if they want to move, today’s rates can mean a much higher payment, so they stay put.

Seller Price Reductions

We are seeing more realistic pricing. In Murfreesboro, 32% of active listings have had a price reduction. In Rutherford County overall, about 37% of sellers have reduced their price.

Building Permits: A Quiet Signal to Watch

This week includes a new chart tracking detached single family building permits in parts of Rutherford County outside Murfreesboro, Smyrna, La Vergne, and Eagleville.

The big story in 2025 is that some builders appear to be pulling back, especially in the second half of the year. If demand rises again, supply may not respond as fast as people expect.

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About the Author

John Turner is the team lead of the Turner Victory Team at Onward Real Estate and a trusted local real estate advisor serving Murfreesboro and Rutherford County. John and his team focus on clear communication, market education, and a low pressure approach that helps clients make confident decisions.

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