The fourth quarter sales reports for November have already
begun to roll in from the Memphis Area Association of Realtors. Playing off
some numbers that were finally encouraging at the end of the summer, the Memphis real estate market
saw some sharp jumps in November, especially in the total sales column.
One of the big take homes for the winter was the fact that
November 2011 hit a 28 percent sales increase over the same month in 2010. With
1,076 units moved this November, the Memphis area saw almost 240 more homes
sold than last year at the same time. The area has still struggled to keep up
with the sales for the year however, as 2010 is maintaining about eight percent
more than the current numbers. The last few months have been improving however,
as the full year for 2012 could see significant improvement.
Existing sales also thrived in November. There was a 30
percent increase in units between 2010 and 2011. In November 2010, there were
only 785 existing sales in the Memphis area and this November there was 1,025
units.
Another factor that could play a part in a steadily
improving area market is the raising of rental rates. Rental rates have been
climbing across the nation and that’s no different here in Memphis. One bedroom
apartments are major factors for many couples and individuals trying to make a
decision on whether to buy a home. Right now, Memphis apartments
are averaging at $703 a month, which is almost $50 more than 2010 and about an
eight percent increase in total.
Buyers could also soon be swayed by the continuously low
level mortgage rates. Throughout the country, they’ve dipped during 2011 and
they have in Memphis as well. Right now, a 30 year fixed rate mortgage is 3.987
APR in Memphis. These sub four levels of mortgage
rates are hitting levels that many have never seen in their lifetime. This,
combined with the fact that apartment rental rates continue to soar, could
always be an attractive cue for potential buyers.
One area that will need to hit an upswing is in new home
sales. The 2010 and 2011 numbers for new home sales broke completely even this
year. While total sales are increasing this winter, new home sales will be a
key factor in the local market’s ability to hit a stride. In the end, these
numbers are certainly telling and it’s also encouraging that November saw some
increases during a month when the market is usually flat. Hopefully the Memphis
area market can continue to build on some of this momentum and get off to a
strong start in 2012.
Wednesday, January 11, 2012
Thursday, January 20, 2011
Happy New Year
We wish everyone a happy, healthy and successful New Year!!!
The 2010 residential real estate market in the Memphis area was a roller coaster ride for certain.
The home buyer's tax incentives boosted sales in the spring and early summer, but home sales dropped in the last quarter of the year....over 20% drop in our area during December alone.
The foreclosure moratorium during the fall reduced foreclosures to historic lows during the last quarter of the year.
Overall home sales for 2010 were down 8% from 2009. There were 13,358 total sales recorded for the year. Nationally, 2010 was the weakest year for home sales since 1997.
On a positive note, the average home sales price was up 1% since the prior year.
Existing home sales prices were also up by 2% from 2009.
The new construction market took another huge hit, down 9% from 2009 with 992 new home sales recorded. In the fourth quarter, new home sales were down 42% and the average new home sales price also dropped from the prior year.
We are looking for some big changes in 2011. If the economy start to turn the corner, perhaps we will see positive growth in jobs and home sales.
The 2010 residential real estate market in the Memphis area was a roller coaster ride for certain.
The home buyer's tax incentives boosted sales in the spring and early summer, but home sales dropped in the last quarter of the year....over 20% drop in our area during December alone.
The foreclosure moratorium during the fall reduced foreclosures to historic lows during the last quarter of the year.
Overall home sales for 2010 were down 8% from 2009. There were 13,358 total sales recorded for the year. Nationally, 2010 was the weakest year for home sales since 1997.
On a positive note, the average home sales price was up 1% since the prior year.
Existing home sales prices were also up by 2% from 2009.
The new construction market took another huge hit, down 9% from 2009 with 992 new home sales recorded. In the fourth quarter, new home sales were down 42% and the average new home sales price also dropped from the prior year.
We are looking for some big changes in 2011. If the economy start to turn the corner, perhaps we will see positive growth in jobs and home sales.
Friday, December 03, 2010
November Area home sale report
The month of November closed with 876 sales, down 24% from the prior year and down 13% from October.
Average home sale prices were up 4% from November 2009 to $129,266!
Year-to-date. sales are down 7% from the same time in 2009 and average sales prices are up 1%.
Bank sales were down 35% from the prior year with only 221 recorded for the month. Year-to-date, bank sales are down 17% from the same time last year!
New home sales were down 39% from November 2009 with only 57 new sales recorded for the month, but that is up 10% from just the month before. Average new home sale prices for November were $235,083, up 3% from the prior year.
Due to the September foreclosure moratorium, November foreclosures were down by 36% with only 265 recorded.
Sort all of this out and see if you see any direction towards recovery. Let me know if you see some positives.
Average home sale prices were up 4% from November 2009 to $129,266!
Year-to-date. sales are down 7% from the same time in 2009 and average sales prices are up 1%.
Bank sales were down 35% from the prior year with only 221 recorded for the month. Year-to-date, bank sales are down 17% from the same time last year!
New home sales were down 39% from November 2009 with only 57 new sales recorded for the month, but that is up 10% from just the month before. Average new home sale prices for November were $235,083, up 3% from the prior year.
Due to the September foreclosure moratorium, November foreclosures were down by 36% with only 265 recorded.
Sort all of this out and see if you see any direction towards recovery. Let me know if you see some positives.
Friday, August 06, 2010
Memphis Home Sales Update
After uplifting results in the second quarter of the year, July home sales fel flat with only 1,161 homes sold, down 21% from July 2009 and down 26% from the prior month.
On a positive note, bank sales were down 33% from July 2009 and down 23% from June. Only 359 bank sales were recorded for the month of July. This drop in bank sales is a large portion of the drop for the entire month of July.
New Memphis Home sales were up 11% with 98 closed in July compared to 88 closed in July 2009.
Foreclosures were down for the month with 437 recorded, an 18% decrease from July 2009. There was a decrease in foreclosure notices as well, down 30% from the prior year.
While this report may appear to be a negative indicator for the Memphis homes Market, total sales revenues are still up 3% for the first 7 months of this year compared to 2009.
On a positive note, bank sales were down 33% from July 2009 and down 23% from June. Only 359 bank sales were recorded for the month of July. This drop in bank sales is a large portion of the drop for the entire month of July.
New Memphis Home sales were up 11% with 98 closed in July compared to 88 closed in July 2009.
Foreclosures were down for the month with 437 recorded, an 18% decrease from July 2009. There was a decrease in foreclosure notices as well, down 30% from the prior year.
While this report may appear to be a negative indicator for the Memphis homes Market, total sales revenues are still up 3% for the first 7 months of this year compared to 2009.
Friday, June 18, 2010
Memphis Shelby County New Zoning Rules
After over 25 years, the first major overhaul of zoning codes is taking place in Shelby County and will affect Memphis Homes and Neighborhoods. The proposed rules, formally known as the Unified Development Code, have already passed the Land Use Control Board and a preliminary vote that has already taken place before the Shelby County Commission. These new rules could transform some Memphis neighborhoods by emphasizing the needs of pedestrians and cyclists. Setbacks for new commercial businesses would be adjusted so that smaller lots could be utilized in new construction for new businesses. Commercial areas and residential areas would "come together" in that homes could be more easily built in commercial areas, but commercial growth could not move into existing residential areas without the approval of the current homeowners.
Some areas of Memphis are grandfathered in with this mix now. The Cooper-Young area in midtown, is a good example. Residents in that area can walk to nearby stores and restaurants with no problem. The passing of these new countywide rules and building codes could change the face of Memphis neighborhoods and growth in our area.
Some areas of Memphis are grandfathered in with this mix now. The Cooper-Young area in midtown, is a good example. Residents in that area can walk to nearby stores and restaurants with no problem. The passing of these new countywide rules and building codes could change the face of Memphis neighborhoods and growth in our area.
Sunday, March 21, 2010
Springtime in Memphis Means Memphis in May
Well Spring has been late getting here this year. This Old Man Winter is dragging his feet leaving town. Finally the trees have started to bud, a few weeks later than usual, and lawns have yet to turn green except from the dye used in the sprayed on fertilizer. As it warms up though, you can catch the smell of charcoal briquettes and bar b q warming on someone's grill. It won't be much longer and Memphis in May will roll out with the Music Fest ...this year featuring blues, rock, gospel, and soul - a musical variety guaranteed to shake your soul. The month long event is dedicated this year to the country of Tunisia, bringing home to Memphis it's music, arts, and cultural diversities.
The International Bar B Q contest is up next during the month and the competition will surely heat up for over $100,000 in prizes and of course bragging rights.
Lastly and at the end of May, is the Sunset Symphony starting with picnics and an air show right over the Mississippi River. At sunset, the live music starts with KC and the Sunshine Band!
Don't miss all or part of this year's Memphis in May festival....it's right around the corner.
The International Bar B Q contest is up next during the month and the competition will surely heat up for over $100,000 in prizes and of course bragging rights.
Lastly and at the end of May, is the Sunset Symphony starting with picnics and an air show right over the Mississippi River. At sunset, the live music starts with KC and the Sunshine Band!
Don't miss all or part of this year's Memphis in May festival....it's right around the corner.
Thursday, January 07, 2010
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.
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.
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