Memphis real estate market third worst in the nation
Both the Commercial Appeal and Daily News reported this week on a study by 247wallstreet.com of the sickest housing markets in America. The Memphis market was rated third worst. A summary of the 10 worst markets by real estate commentary blog Agent Genius provides some insights and possible flaws in the study. The criteria used were vacancy rates, total housing units, and unemployment rates.
Here is the data for Memphis:
Homeowner vacancy rates: 4% (9th)
Rental vacancy rates: 13.5% (11th)
Total housing units: 550,896
Unemployment:10.1%
Memphis’ unemployment rate is second highest among the markets mentioned, eclipsed only by Detroit.
Memphis investors apparently thriving
We hear more and more positive news from companies selling Memphis investment properties. It seems that the depressed and sluggish market has been a boon for investors, who apparently flock from all over the world to pick up bargain properties and turnkey management deals in Memphis. Will the declining occupancy rates (13.5% rental vacancies) affect this exuberance? Will the investors be able to divest if their properties stop generating those enticing cash flows? I don’t know the answers. It’s a mysterious niche.
I have said it before, and I am sure I will say it many times more – All Markets are Micro! Lumping together entire metro areas for articles or blog posts may make for interesting, or sometimes confusing, reading, but it doesn’t paint a true picture of the elements of the markets, just an average. The Memphis market is great, if you know where to look. Just ask the agents who have stayed in the business during these stressful times.
The Commercial Appeal asked in a poll, “Do you think the real estate market in Memphis will eventually recover?”
Here are the poll results.
What do you think? Your comments are welcomed and encouraged.
Related articles
- Memphis has nation’s third-worst housing market, says investment website (knoxnews.com)
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- Mid-Century Modern for sale – 346 Waring, Memphis, TN - July 9, 2013
- RE Buzz – Real Estate News Roundup – July 9, 2013 - July 9, 2013
Janice says
Glad I’ve got my house under contract!
Joe Spake says
Me too!
Janice says
Glad I’ve got my house under contract!
joespake says
Me too!