There is definitely a change taking place right now in the Memphis real estate market. Like the picture above, the fog is lifting and the city is starting to come alive again with real estate transactions starting to show improvement in many areas. The change can be seen very clearly in both the residential retail market and the residential investment market. The Memphis Area Association of Realtors (MAAR) has reported some very interesting numbers over the last two months. Sales are up. Pricing is up and properties are moving quicker. All of those are good signs for the Memphis market.
Memphis Real Estate in Transition
Memphis was also named #7 in Kiplinger Magazine's recent study of major cities and their rental affordability index. Here is what Kiplinger had to say about America's 18th largest city:
Some other interesting Memphis real estate numbers:
Total sales in August: 1,170
Properties selling under 30 days: 449
Properties selling under 60 days: 213
The median home price in Memphis has gone up to $128,000 on properties sold in 2013 through the end of August. That is an increase of 11.3% over same time period last year. So far, 9,122 units have been sold in Memphis during that same time period which accounts for a 9.7% increase.
Properties selling for under $100,000 continue to lead the way with 426 properties sold in August. A majority of the homes selling for under $100,000 are 3 bedroom properties. What is really good for Memphis is the number of homes selling for between $100,000 and $199,000 - 401. Most of these properties are 4 bedroom properties. That is 34% of the market and while some are certainly being purchased for investment, a majority of these homes are going to owners looking to occupy the properties. This stability and increase in demand is helping to push Memphis property values back up and is helping to reverse a trend of fewer owner-occupant transactions.
Memphis has also seen a huge number of cash transactions this year with 3,505 completed year to date. That is 15% more properties being purchased with cash that with conventional financing which stands at 3,058 closing year to date. These two purchasing types lead the way in Memphis with FHA and VA loans trailing far behind with 1,691 and 438 closings respectively.
Memphis continues to be an investors city with ample opportunity. The properties continue to be affordable and as the Kiplinger Magazine article on Big Cities with affordable rent pointed out, the average rental ranges are extremely affordable. Memphis is a big city with a lot of promise ahead for real estate investors who are building their portfolios with solid single-family homes.