Why Are There 42% More Homes on the Market in Murfreesboro Than Last Year?

ByTurner Victory Team
February 23, 2026  •  Real Estate Market Insights

Why Are There 42% More Homes on the Market in Murfreesboro Than Last Year?

By John Turner  •  Turner Victory Team at Onward Real Estate
Murfreesboro housing inventory up 42% — what it means for buyers and sellers in Rutherford County
1,377 Active Listings in Rutherford County — 42% Above the 3-Year Average
3.3 Mo Months of Supply — Still Below the Balanced Market Range
6.01% 30-Year Fixed Rate — Lowest in Over Three Years

Why are there 42% more homes on the market in Murfreesboro than last year? The short answer is that we are comparing against two years of abnormally low inventory — not a market that is suddenly flooded with homes. Rutherford County currently has 1,377 active listings. That number sounds large, but when you look at months of supply and where buyers are actually active by price range, the picture is a lot more nuanced than the headline suggests.

Where Did All This Inventory Come From?

To understand the 42 percent increase, you have to look at where inventory has been. In 2023 and 2024, the Rutherford County market was running on extremely thin inventory. Homeowners who locked in mortgage rates in the 2 to 4 percent range had very little incentive to sell and move into a new mortgage at 6 or 7 percent. That kept a significant amount of potential supply off the market.

As we moved into 2025, that lock-in effect started loosening. Life events — job changes, growing households, divorces, retirements — eventually force people to move regardless of their mortgage rate. So listings started climbing. The 42 percent increase is not a sign of market stress. It is a return toward more normal conditions after two years of historically low supply.

Does 1,377 Active Listings Mean the Market Is Soft?

This is where a lot of buyers and sellers get tripped up. Raw listing counts feel significant but they do not tell you much on their own. The number that actually matters is months of supply — how long it would take to sell all current inventory at the current pace of sales.

3.3 Mo Current months of supply in Rutherford County — still below a balanced market
4–6 Mo Range economists consider a balanced market between buyers and sellers

Even with inventory up 42 percent, Rutherford County is still operating below the lower end of a balanced market. Compare that to where we were in 2023, when months of supply was well under two months in most price ranges. That was an extreme seller’s market. What we have now is closer to normal — and normal is not a bad thing for buyers or sellers.

How Does Inventory Look by Price Range Right Now?

The overall inventory number masks very different conditions depending on what price range you are shopping in. Here is how the market breaks down.

Under $300K 91 Homes Under 2 months supply — still a strong seller’s market. Mostly townhomes and condos. Competition is real.
$300K – $500K Balanced Buyers have options and some negotiating room. Well-priced homes are still attracting attention quickly.
$700K+ Stacked Over a third of listings are relists — pulled and relisted after failing to sell. Pricing is the primary issue at this end.
Key takeaway: Inventory is not evenly distributed. Under $300,000 is still tight. The $300,000 to $500,000 range is balanced with room to negotiate. Above $700,000 is where the surplus is concentrated — and much of that surplus reflects overpriced homes, not weak demand.

What Trend Should Buyers and Sellers Be Watching Right Now?

The more important story is not the current inventory level — it is where the trend is headed. New listings coming on the market are down nearly 5 percent compared to the three-year average. At the same time, pending sales are up 12.5 percent over that same benchmark. More buyers are making offers while fewer new homes are being listed.

If that gap continues through spring, inventory will start tightening rather than expanding. Add in the fact that mortgage rates are now at 6.01 percent — the lowest in over three years — and MBA mortgage applications are running above 2023, 2024, and 2025 levels for this time of year. Demand is building on a supply base that is not keeping up.

Supply context: National housing starts are at 1.4 million — a low number. Builders have pulled back. If new construction does not accelerate and new listings continue to lag, the current 42 percent inventory surplus could shrink faster than most people expect heading into summer.

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What Does the Inventory Picture Mean If You Are Buying in Murfreesboro?

Right now is genuinely a better time to be a buyer than 2023 or 2024. You have more choices, rates are more favorable, and you have some room to negotiate depending on the price range. That does not mean lowballing every offer — well-priced homes are still moving. But the days of waiving inspections and paying $30,000 over asking are behind us in most price ranges.

What Does the Inventory Picture Mean If You Are Selling in Murfreesboro?

The 42 percent number should not intimidate you — but it should sharpen your focus on how your home is positioned. Nearly half of all listings in Rutherford County do not sell on the first attempt. That is not a market problem. That is a pricing, presentation, and promotion problem. Homes that are priced correctly from day one are still selling. Homes that are overpriced are the ones adding to the inventory count and eventually pulling their listing.

The inventory is there. The buyers are there. The question is whether your home is positioned to attract them.

Frequently Asked Questions

The 42 percent increase is largely a comparison against two years of abnormally low inventory in 2023 and 2024. During those years, the mortgage rate lock-in effect kept many homeowners from listing because they did not want to trade a 3 percent rate for a 6 or 7 percent rate. As life events have forced more moves and as rates have started to come down, listings have climbed back toward more normal levels. The increase does not reflect a market in distress — it reflects a return toward historical norms.
At 3.3 months of supply, Rutherford County sits just below the lower end of a balanced market, which economists typically define as 4 to 6 months. That puts it in a slight seller’s market overall — but the picture varies significantly by price range. Under $300,000 is still firmly a seller’s market with under two months of supply. The $300,000 to $500,000 range is more balanced. Above $700,000 leans toward buyers, with a notable concentration of overpriced relisted homes.
As of late February 2026, there are 1,377 active listings in Rutherford County. That is 42 percent above the three-year average. Under $300,000, only 91 homes are available. The bulk of the inventory sits in the $300,000 to $700,000 range, with a meaningful concentration of overpriced or relisted homes above $700,000.
The current data points toward inventory tightening rather than growing. New listings are running nearly 5 percent below the three-year average while pending sales are running 12.5 percent above it. That means buyers are absorbing inventory faster than sellers are replacing it. If that trend holds through spring — and if mortgage rates continue to improve — the 42 percent inventory surplus could shrink meaningfully by mid-2026.
Yes, for most buyers. You have more choices than were available in 2023 or 2024, mortgage rates at 6.01 percent are the lowest in over three years, and there is room to negotiate in most price ranges — particularly $300,000 to $500,000. Under $300,000 is still competitive and moves quickly. The window of having more options without the extreme rate environment of 2023 may not last long if inventory continues to tighten.
In most cases, it comes down to pricing. Nearly half of all listings in Rutherford County do not sell on the first attempt. Above $700,000, over a third of active listings are relists — homes that were already on the market once and failed to sell. Market conditions are not the primary driver of homes sitting unsold. Overpricing is. Homes that are priced correctly relative to current data are still selling. Homes priced above what buyers will pay are the ones driving the inventory numbers higher.
John Turner, Murfreesboro TN Realtor and Team Leader of the Turner Victory Team
John Turner
Team Leader  •  Turner Victory Team at Onward Real Estate  •  Murfreesboro, TN

John Turner has been a Realtor in Murfreesboro, Tennessee since 2000, helping neighbors buy and sell 4,200+ homes across Middle Tennessee. With 454+ five-star reviews, John and the Turner Victory Team publish weekly market data so buyers and sellers in Rutherford County always know exactly what the numbers mean for their situation. Call or text 615-586-0900 or email john@turnervictory.com.

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