As expected, July sales dropped dramatically from July, 2009. The Memphis Area Association of REALTORS® reports 995 sales for July, down from 1,369 last year. That’s about one sale for every 3.5 licensed agents in MAAR.  Year-t0-date sales are down only 1.6% from 2009, a number artificially inflated by the home buyer tax credits earlier in the year. Median sale price dropped 20.3% to $89,295.
So, 1 property per 3.5 agents. But that ratio might be even more skewed as 307 sales or 30.8%% were “bank sales”. MAAR defines “bank sales” as: “Bank sales represent all warranty deeds recorded in Shelby, Fayette and Tipton counties where the seller was a bank, REO company, or other similar institution.” Most people in the business call them REO’s Real Estate Owned – in other words foreclosed,or other distressed homes being resold. Most REO properties in the area are handled by a relatively small pool of agents, who have qualified themselves to work with certain banks, FHA, HUD, and REO companies. REO sales are down 21.2% YTD from last year, while non-REO (regular) sales are up 12.2% – a number that is probably also skewed by the tax credits.
I don’t have any profound proclamations about these stats. I think the market is still going to have to work through the impact of the tax credits earlier this year. As I mentioned in a post a few days ago, the credits have kept us from feeling a market bottom, and we are still anticipating one. Until we feel we have started a rebound, I am afraid the market will remain sluggish.
Click here for the full MAAR July Report which includes sales by neighborhoods, inventory and historic data.
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