Shelby County’s housing market continued to show signs of improvement in the third quarter, posting double-digit increases in several key areas over the same period last year.
(Daily News File/Lance Murphey)
The county netted 4,686 home sales in the third quarter, a 12 percent increase from 4,176 in the third quarter of 2012, according to real estate information company Chandler Reports, www.chandlerreports.com.
Total sales volume in the third quarter was $682.8 million, up 12 percent from $549.6 million in the third quarter of last year.
And the average sales price was $145,702, up 11 percent from $131,615 in the third quarter of last year.
Doug Collins of Prudential Collins-Maury said the continued improvement in housing numbers was bound to happen after the roller coaster ride the market has endured, from the unrealistic highs in the early- to mid-2000s to the prolonged slump the market has endured following the Great Recession and housing crash.
“It’s been such an improvement from where we’ve been,” Collins said. “All indications are that the bottom was in 2011 and things are getting back to what should be a more normal level for us. I think this is more normal than it has been in a long time.”
Collins said Shelby County could even see a 10 percent increase in sales for the year, depending on how consumers react to the economy.
“I think it is likely, although a 9 percent year-over-year is more likely,” Collins said. “More so because of all the negative talk coming out of Washington, D.C., than the market itself. Consumer confidence is key and Washington seems to be doing their best to erode that confidence.”
For the year, Shelby County has recorded 12,294 homes sales, up 10 percent from 11,176 sales over the same period last year. Total sales volume tipped the scales at $1.68 billion, up 22 percent from $1.38 billion last year. The average year-to-date sales price in Shelby County was $137,309, up 10 percent from $124,308 last year.
Regina Hubbard of ERA Legacy Realty, and president of the Memphis Area Association of Realtors, said multiple factors are fueling the rebound.
Hubbard said inventory remains somewhat tight, which has helped fuel the steady increase in home values, which is prompting more and more homeowners to sell their properties.
Meanwhile, interest rates are still at historically low levels, causing consumers who have been considering a home purchase to go ahead and enter the marketplace.
“Those are still ingredients that make for a positive income,” Hubbard said. ”Those are good things for both sides of the coin.”
Collierville’s 38017 ZIP code saw the highest number of sales in the third quarter, with 314 homes taken off the market. Next was Cordova North’s 38016 ZIP code, which recorded 276 sales. The 38117 ZIP code in East Memphis came in third with 273 sales.
Collierville led the way in total sales with $94.7 million, followed by Arlington’s 38002 ZIP code at $58.7 million. The 38117 ZIP code came in third with $56.7 million in total sales.
Germantown East’s 38139 ZIP code had the highest average sales price in the quarter at $372,876. Eads’ 38028 ZIP code was second with an average sales price of $331,166, followed by Collierville with an average sales price of $301,646.
The number of existing home sales increased 13 percent, to 4,475 in the third quarter from 3,961 in 2012. The average sales price for an existing home in the third quarter was $139,943, up 12 percent from $125,011 last year.
New home sales totaled 211 in the third quarter, down 2 percent from 215 over the same period last year. The average sales price for a new home was $267,836, up 6 percent from $253,272 last year.
Non-bank sales in the third quarter totaled 3,935, up 24 percent from 3,168 last year. And bank – or foreclosure – sales dropped to 751 in the quarter, down 25 percent from 1,008 last year.
Chandler Reports is a division of The Daily News Publishing Co. Inc.