Downtown Memphis condo sales -2010

The Downtown condo market has suffered from over building and diminished sales since the housing bubble and it’s burst.  Foreclosures and foreclosure auctions of entire condo developments have effectively brought down prices.   2009 Condo Sales totaled 107, many of those driven by foreclosures, which is reflected in the variation in sold $/square foot ($/SF), the sales price divided by square footage.

$/SF took another hit in 2010, dipping to $130.61/SF,  down from 2009’s average of $145.42/SF.  Compare that to the 2006 Condo Boom figure of $174.25/SF (and 393  sales).  The change in $/SF from 2006-2010 translates to about a 25% decline.

In my opinion, we have seen the worst of the Downtown Condo market.  Those who bought their condos in the boom years at the top of their market can still expect to take a losses if they sell soon.  The overall the market will probably take a decade to return to pre-bubble burst  levels; however, the popularity of urbanism and Downtown living, the Law School, Pinnacle Airlines, and the influx of small business will be  unique drivers in the Downtown market.

I really can’t imagine the Downtown condo market going any way but up.   For those of you who have waited for the bottom, before jumping into the market, you’ve probably missed it.   If you want to live Downtown, now is the time to start looking.  There are still some incredible values out there.

Contact me for more information on the condos and financing.