ERIN EDGEMON, Business Editor
Posted: Sunday, May 24, 2009 8:41 am

Rutherford County’s real estate market is beginning to pick up as economy begins to improve, said local real estate agents.

“I think it’s become more and more obvious to buyers that there are deals and interest rates right now that have not been available before,” said Justin Holder, real estate agent for Bob Parks Real Estate.

Buyers can find deals on housing priced about 20 percent below what they were valued at just a few years ago, and interest rates continue to hover around 5 percent, he said.

Von Dotson, a real estate agent with Coldwell Banker Snow & Wall, said school nearing their summer closure and the income tax return checks are likely factors for the increase in home sales at the beginning of the second quarter of this year.

The federal economic stimulus, which gives first-time homebuyers $8,000 for buying a home, is a huge incentive for many to go ahead and buy a home, he said.

Home sales still remain below 2008 levels, which began to drop at the end of the third quarter last year.

According to MTAR, 253 homes were sold in April, down 21 percent from the same month in 2008.

In March 2009, 260 homes were sold compared to 337 in March 2008.

Sales jumped 37 percent from February 2009 to March.

Essentially, John Jones of John Jones Real Estate said home sales are at 1998-99 levels.

Steven Dotson, president of Red Realty, said pending sales are up from the mid-200s in January to the mid-300s in April.

“These numbers show the market is improving, and we should see a much healthier second and third quarter,” he said.

Jones said the real estate market will continue to improve once the unemployment rate decreases.

Despite the good deals on homes and low interest rates, people are not going to purchase a home if they are unsure of their work situation, he said.

Holder expects to see a busy market this summer.

“For those that already live in the area, I think they’ll see this as a great time to upgrade,” he said. “For those looking between Murfreesboro and surrounding areas, I think they’ll realize the value here more than ever.

“The summer will be a crucial time to continue to absorb the exiting homes that have been stagnant on the market, making way for a balanced, fresh inventory,” Holder said.

Erin Edgemon can be reached at 869-0812 and at eedgemon@murfreesboropost.com.