Realty Trac is reporting that foreclosure activity in Memphis is up four straight months and even though some in Memphis are disputing that, the trends we are seeing follow the reporting from Realty Trac pretty closely.
"There are a few more houses available right now than normal, but it is spotty and not always in areas of town we want to purchase", says Brett Clothier who purchases all of the properties for MemphisInvest.com and eventually out of area investors. "We are still very picky on the properties we will purchase and just because we can, does not mean we will purchase a property out of foreclosure. It has to be the right property".
Realty Trac is reporting that Memphis may be seeing a ramp up in foreclosure activity a little sooner than the rest of the country. I have linked the article here, but according to Realty Trac, as foreclosures have gone up and down across the country since May, foreclosures in Memphis have steadily been increasing.
Compared to home sales which were up 8% over a year ago, but still down almost 2% from July, the increased foreclosure activity should lead to more opportunity for investors. That is good news for investors looking to continue to invest here in Memphis and either start or add to their portfolio of Memphis properties. The faster that the shadow inventory is reduced and properties are absorbed by investors, the quicker home starts begin again and values begin to angle back up.
* One important note for the end of this blog! Just because it is a foreclosure...Just because it is being sold below market value...Just because you can buy it...
Does not always mean you should!
Pay attention details and listen to what the expereinced buyers in Memphis are saying. We are still purchasing properties every single week. In fact, we have 55+ properties to close here in Memphis in the next 45 days, but Brett is still being very cautious and ony buying the properties that he knows are well below value and are in areas where a great renovation will lead to a top rental rate and a great tenant.
All of these factors are what are leading investors who purhase with MemphisInvest.com to find great properties and the consistent returns they are looking for. Price does not equal value and that is more important now than ever!