Memphis Area residential real estate ended the year with a 10.9% decrease in sales over 2021. December was down 31.2%
A few factors led to consumers putting on the brakes, but the main factor was a rapid increase in mortgage interest rates. The rapid increase from incredibly low rates from around 3% to 6%+ seemed to either scare potential buyers out of the market or put their dream homes out of reach. Another factor was pricing. Demand over that past couple of years has led to competitive bidding (or as we say in the business, mulitple offers), and waivers of appraisals and inspections. I would say it has been the strongest sellers’ market I have seen in my 26+ years in real estate. That’s over now.
For 2023, as inventory grows and interest rates edge down a bit, buyers will re-enter the market. More inventory, especially with fewer buyers gives buyers an advantage. The sellers’ market that has been accustomed to getting offers within days of putting a house on the market is now seeing days on the market extending to weeks or even months. We are slipping into a Buyers’ market.
Three questions with the same answer: Will interest rates drop? Will home prices stabilize or drop? Will overall home sales increase? Answer: slowly. If you are interested in what’s going on in the market I would be happy to get with you about home values in your neighborhood, or if you are a buyer, help with with referrals to loan officers and mortgage strategies.
Memphis Real Estate – so what’s happening in your neck of the woods? The Memphis Area Association of Realtors releases a monthly report on home sales in various categories and neighborhood reports on pricing units sold and changes. If you want to check your neighborhood and see the overall sales report, download it HERE.
And please remember I am a full-time Realtor, specializing in Midtown, East Memphis and Downtown. Please feel free to contact me anytime for your Memphis real estate needs. I can also help with commercial and out of town referrals if you have those needs. I look forward to hearing from you. Have a great 2023