Shelby County home sales appear to be in seasonal slowdown mode, with agents selling fewer homes compared to the same month last year, according to real estate information company Chandler Reports.
However, while overall home sales in Shelby County slowed, pricing remained strong and year-to-date sales information points to a moderate rebound for the industry.
The county netted 1,124 home sales in November, down 5 percent from 1,183 homes sold in November 2012, according to Chandler Reports,www.chandlerreports.com. The 1,124 homes sold in November also is down 16.3 percent from 1,343 homes sold in October.
However, average home sales prices in Shelby County jumped 12 percent in November to $139,110, up from $124,101 in November 2012, and total sales volume for the month was $156.35 million, up 7 percent from $146.81 million a year ago.
According to Chandler reports, 14 out of 33 ZIP codes in the county had an increase in overall sales activity for the month and 20 ZIP codes had an increase in average sales prices.
“It always slows down about this time of the year, from November to January,” said Memphis Area Association of Realtors president Regina Hubbard. “On the flip side of that coin, the home values continue to improve, which is very, very encouraging. We didn’t anticipate an overnight recovery. It’s going to be a steady, moderate recovery.”
The housing market has been going through a correction since the housing bubble burst, which left the industry in a prolonged, five-year slump.
More buyers, attracted by still historically low interest rates, have been entering the market while homeowners who may have been wanting to sell for a while have been drawn in by rising home prices.
“This is an opportunity for us to get prospective buyers in place and it’s encouraging to the sellers because they can get more out of the market,” Hubbard said.
Collierville’s 38017 ZIP code had the highest number of sales in November, with 95, according to Chandler Reports. The 38018 ZIP code of Cordova South was second, with 79 homes sold. Next was Cordova North’s 38016 ZIP code with 78 sales.
Collierville led the way in sales volume in November at $27.16 million, while Germantown East’s 38139 ZIP code had the highest average sales price at $452,180.
Bank, or foreclosure, sales plummeted in November, contributing to the decrease in the overall number of homes sold during the month. There were 190 bank sales recorded in November, down 19 percent from 236 bank sales compared to November 2012.
There were 934 nonbank sales in November, down 1 percent from 947 non-bank sales last year.
There were 1,041 existing homes sold in November, down 6 percent from 1,108 existing homes sold last November. The average sales price for an existing home in November was $128,355, up 14 percent from $112,641 last November.
There were 83 new homes sold in November, up 11 percent from 75 new homes sold in November 2012. The average sales price for a new home in November was $253,595, down 7 percent from $293,950 last year.
Through November, 14,761 homes have been sold in Shelby County this year, up 7 percent from 13,760 homes sold over the same period in 2012. Total sales volume through November was $2.03 billion, up 19 percent from $1.70 billion over the same period last year. The average sales price to date through November was $138,027, up 11 percent from $124,147 over the same period last year.
Those numbers represent a more sustainable, pre-bubble market that doesn’t include the wild highs and lows that previously hit the industry, Hubbard said.
“We’ll see moderate increases in the overall market through the end of the year and into 2014,” she said. “We like it this way.”
Chandler Reports is a division of The Daily News Publishing Co. Inc.