Real Estate Information

Memphis Market Could Experience a Steady Upward Shift

According to the statistics released from the Memphis Area Association of Realtor (MAAR), home sales for the month of August are up over 13 percent from August 2010. There were about 1,313 sales in total for the month of August 2011, according to the property records database. July also saw a slight increase in sales from last year with a 2 percent increase over 2010 numbers.

Even though the yearly numbers are a bit down from 2010, the great statistics from August are a good sign for Memphis real estate. Hopefully good numbers keep rolling in for the months of September and October in an effort to close the gap between overall sales in 2010 and 2011. One telling statistic is that luxury home sales of over $500,000 are seemingly on the increase. In August, there was nearly an 11 percent increase in sales over July’s numbers. Also,

In the Memphis area, one good positive about the housing market is that prices have seemed to stabilize throughout the summer. Over the past five or six months, there’s been a mix in results from home sales in Memphis. There were up and down results in April and May, as well as a slow climb from July to August, as evident by the MAAR sales results.

Certainly there’s been a steady increase in the overall market in Memphis over the past year. At the outset of the year, publications such as Smart Money listed Memphis within their list of markets expected to rebound in 2011. An increase in business for FedEx, one of the cities’ main businesses was one of the multiple reasons Yahoo Real Estate expert Liza Scherzer put Memphis on the list.

Nationally, foreclosures are down but they still make up for nearly a third of all home sales taking place and that’s no different in Memphis. The local rate is at 2.5 percent in comparison with the national rate of 3.46. However, the figures coming from MAAR should show that overall the Memphis apartment, townhome, condominium and housing sales could be primed for a steady resurgence in the second half of 2011.

With interest rates being low and the possibility of financing at an accessible state, homes can certainly be afforded in the current market. With the numbers showing some increases in local sales over the past month or so, it seems some may be eager to get back into the market and find the house of their dreams in Memphis.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.