The Memphis Area Association of Realtors (MAAR) has released sales information for December, 2016 and end of year. It’s been an interesting year, and I think 2017 will be a good year for real estate sales.
Unit sales increased 10% in 2016 over 2015; and there were significant rises in median and average sales prices. Sales increased in spite of ever decreasing inventory and significant price rises in some areas. To download a copy of the full report, CLICK HERE.
Inventory was a significant factor in the 2016 residential real estate market. The chart shows a significant drop in the last 3 months of 2015, and, considering expected seasonal changes, a rather flat inventory leading a significant drop in the last half of 2016, going below 5000 to a mid-December total of 4715, compared to inventory of 5793 in December, 2015. Low inventory has driven the old supply vs. demand axiom and keeps us in a seller’s market. I think it will be a while before inventory picks back up. More and more potential sellers seem to be happy staying put and continuing to wait out the market.
Unit sales are up by double digits for 2016 in 2 of my specialty areas: Downtown and East Memphis, with Midtown close behind with a 9.4% increase. Median and average prices showed slight increases in those areas. Check out your neighborhood sales data by downloading the full report HERE.
What to Expect in 2017
- Seller’s market for most of 2017
- Interest rates will rise slightly, possibly impacting first-time and lower income buyers
- The mortgage interest deduction will be put at risk by Congress
- More suburban empty nesters will downsize to the core city – Midtown and Downtown
What do you think will happen in Memphis real estate this year? If you are considering selling or buying in 2017, I would be happy to discuss your particular situation. Even though I have limited my service areas to better serve Midtown, Downtown and East Memphis Clients, I would be happy to refer you to competent, professional agents outside my service areas. If you are planning a move out of town, I network with great agents all over the country and can help you find the right agent at your destination.
Please feel free to contact me anytime. HAVE A GREAT 2017!