Memphis Home Sales still lagging behind National Sales

The National Association of Realtors annouced a 5.5% increase in existing home sales nationally during September. This is a glimmer of hope that we have hit bottom and may see a light at the end of the tunnel.
Since it did take some time before the Memphis Homes market was effected by the national epidemic of foreclosures and bubbles bursting, it will also take some time before Memphis home sales will feel any effect from a turnaround in the national market. It's kind of like a trickling down effect. The downturn in housing nationally started in 2005, but the Memphis market did not really start downturning until the middle of 2006. The reason is that our market here is normally much more stable and has no skyrocketing home values that will burst as do other markets around the country. Once sales pick up in other markets, our home sales will pick up some steam as well.
Times and conditions seem to be working towards a recovery of some type. A mix of low rates, lower home prices, and tax credits makes a perfect opportunity for first time home buyers and investors to jump into the home buying market. The biggest home discounts are of course foreclosures and distress sales. Other homes on the market may only have 5% to 10% decreases as these are sellers who are selling due to normal life events and not due to distress. Home inventory is till higher than normal, but latest figures show that listed homes are now down by 25% from their highs just a few months back.
The market appears to be headed for better times, but we may not see the best results until after the elections and after the holidays.