The Memphis Area Association of Realtors has released year end residential sales statistics for the Memphis area, including Shelby, Tipton and Fayette Counties. Data is compiled from deeds recorded in those 3 counties. While the number of sales (15,602) lagged 2013 numbers by 3.9%, we saw a substantial increase, 12.1%, in median sales price – a good sign of a strengthening market.
Foreclosures and Bank Sales
It’s always good news to see a decrease in foreclosures – another sign of a strengthening market, and probably a direct result of HARP and other programs to help owner-occupants keep their homes. Increasing prices, and thus, values also played a part.
Bank Sales, or REO sale, are also down significantly. (Bank Sales are foreclosed properties that are put back on the open market by the lienholder who foreclosed.)
The report breaks down sales by area, and I have included a part of the grid that reflects my niche markets of Downtown, Midtown, and East Memphis. The most notable thing here is not the drop in sales units, but the increase in median prices. To me that says the market is healthier, and that the system is absorbing foreclosures and bank owned properties, the so-called shadow inventory that has impacted values and sales. Download the full MAAR 2014 Sales Report HERE to check out statistics for your area.
Inventory continues to be fairly low across the board with the graph below reflecting pretty normal seasonal fluctuations. I have found that home buyers in many cases are willing to wait for the right house to come on the market. Hopefully price increases with motivate homeowners who have been considering selling to jump into the market.
Download the full MAAR 2014 Sales Report HERE
What’s in store for 2015?
I stopped making real estate predictions, but here are a few items I will be watching and reporting on in 2015: Mortgage interest rates; changes at the GSEs (Fannie Mae, Freddie Mac); local inventory, lower down payments and other changes in housing affordability; local population and area home buying trends; residential investor activity; internal battles in the real estate industry. More details later. I will also be keeping you posted with homeowner tips and general real estate news. I post very frequently on my Facebook Business Page, Joe Spake Real Estate – Click, and like the page for updates on a variety of real estate topics.
HAVE A GREAT 2015!