Memphis real estate sales continued to show improvement in February. The Memphis Area Association of Realtors (MAAR) home sales report for February shows a very slight decrease in unit sales year-over-year for February, 2013, but year-to-date unit sales are up 22% through February with a total of 2199 closings in 2013 in Shelby, Tipton and Fayette Counties, according to recorded deeds. Median and average prices continue to show double-digit improvement over 2012.
What are the factors impacting the current Memphis area real estate market?
- Supply – Property inventories are at historic lows. There are about 27% fewer houses are on the market today than there were in March, 2011. With sales prices increasing, it looks like the old law of supply and demand might be kicking in. This is a signal that we are moving into a seller’s market. Sellers seem to be holding back on listing their homes, and the banks are still keeping a good portion of the shadow market off the market. Maybe the warming weather will stimulate more listings.
- Demand – In general potential home buyers are feeling better about the economy and more secure in their positions. Changes to tax advantages for home owners seem to be off the table for now. Houses still look like a good deal, and more and more buyers are showing interest, especially first time buyers. I have had a number of inquiries from customers about downsizing. Downsizing could stimulate supply also, as empty nesters give up their 4 bedroom houses to opt for something smaller.
- Mortgage interest rates – Rates are still at record lows; so low that more borrowers seem to be opting for 15 or 20 year loans as opposed to 20 year loans. I hear, “It’s hard to get a mortgage now, isn’t it?” Actually it is not harder to qualify, just more tedious due to new government and GSE hoops to jump through. It’s inevitable that rates will go up as the economy continues to improve.
I am always interested in your opinions. Please leave a comment or share on social media.
Download the full MAAR Report Here.
Realtor at InCity Realty
Joe Spake is a Real Estate Broker and Consultant, specializing in Midtown, Downtown, and East Memphis residential properties. His interests include architecture, community activism, music, photography and cooking. Get more great real estate information on Joe's Facebook Page. Call 901-870-3440 or Email Joe@spake.com
Latest posts by Joe Spake (see all)
- Thank You, Essential Workers - September 7, 2020
- Mid-Century Modern for sale – 346 Waring, Memphis, TN - July 9, 2013
- RE Buzz – Real Estate News Roundup – July 9, 2013 - July 9, 2013
What do you think? Leave your comments.