Memphis Area Association of Realtors Reports Big Growth
The Memphis Area Association of Realtors (MAAR) showed a tremendous increase in year over year sales for January to start 2013. The association released data entered into the MAARdata property records database showing over 1,250 sales for the month of January which was a 46% increase over January of 2012. The total number of properties sold was also an 8.9% increase over December of 2012.
These numbers are huge for Memphis real estate investors because it takes little steps like this for a market to enter into a true recovery. While the sales are picking up on both the investment and retail side, there is no doubt that a good part of the increase is due to investment activity in the city. The numbers have not been released yet on the percentage of sales that went to investors, both individuals and institutions, but my guess would put the number at between 20% and 30%. Whatever the percentage, the number of investment purchases in the city continues to be robust. The more this market can begin to enter a strong, traditional retail sales period, the quicker price values will level off and we can begin to see a stabilization in our market.
The End Of Real Estate Investing In Memphis?
For any real estate investors thinking that this is the beginning of the end for investing here in Memphis, you may want to think again. According to the data released by MAAR, there are 6,070 units for sale in Memphis as of the beginning of February, which is a 6% decline from December. However, 10% of the listings remain in a distressed status and the number of new listings coming on each month has actually trended even with listings sold or expired for the last few months according to Movoto.com, a data aggregation company. The average price per square foot also decreased while according to MAAR the average sales price went up. So it appears that the properties making up the difference may be bigger properties at the upper end of the Memphis real estate price range.
Movoto reports that the number of days on market went down as did the average list price and 536 properties took price decreases on their listings. So what does it all mean? There is still a healthy market for Memphis real estate investors and lots of indicators that it will remain healthy for a while. And when the recovery really takes hold...what then?
This market has always had a cost of living below national averages and a renter population that is roughly 17% larger than the national average. The deals themselves may look a little different and the locations around the city may change, but there have always been opportunities for investors here in Memphis. So is it a good time to be investing in Memphis? Absolutely. But, take your time and research the city and the deals and keep reading the updates here and we will keep our on on the data and keep you filled in! If you have questions or comments about the Memphis Market leave them below...
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sources: MAAR, Movoto, Memphis Business Journal