2009 Memphis Home Sales Report

Good News! Bad News! Irresponsibly reported News!

OK...here it is...Shelby County 2009 home sales were down 27% from 2008 home sales.

December sales, however, were up 9% over the previous December and most likely due to the first time home-buyers' program for this increase.

Here is where the irresponsible part comes in. It has been reported that "home sales values had a whopping 20% increase" over the prior year's month of December. What really took place was this; the average price of homes sold went up because fewer lower priced foreclosures were sold and more homes in slightly higher price ranges were sold. Also, after being on the market for sometimes in excess of a year or more, many new construction homes were sold at highly reduced pricing...sometimes as much as anywhere from 50k to 100k off the original asking prices. This was done to prevent the banks from taking these homes from builders who could no longer carry them in inventory. So, naturally, when more homes sell in the upper two hundred thousand dollar up to 350k price range, on homes that were once priced at 325k to 425k...then the average price of sold homes goes up....and up....BUT...the HOME VALUES (as reported) do not go up. Mainly because you now have what were once four hundred thousand dollar homes selling for just over three hundred thousand dollars...actually making home values do down.

It is a sad state when reported information may lead to both home sellers and home buyers to think the wrong thing...and that is....that the value of their Memphis homes just had a "whopping increase". This is poor reporting and should be corrected.