VOL. 129 | NO. 135 | Monday, July 14, 2014
Shelby County Home Sales Dip 1 Percent in Quarter
By Amos Maki
Shelby County home sales slowed slightly in the second quarter compared to the same three-month period in 2013, but rising prices have real estate professionals hopeful for a strong end to the year.
The period of April to June saw 4,189 homes sold, down 0.9 percent from 4,225 homes sold during the same quarter a year ago, according to real estate information company Chandler Reports, www.chandlerreports.com.
But the homes sold in the quarter that ended June 30 increased in sales price, averaging $151,362, which was up 7.2 percent from $141,292 in the second quarter of 2013.
Greg Glosson, president of the Memphis Area Association of Realtors, said the market remains healthy despite colder temperatures that lingered into April and excessive rains in May and June.
“Given the slow start we had I’m really pleased with the performance,” Glosson said.
The 38017 ZIP code of Collierville saw the heaviest sales activity in the quarter with 333 sales averaging 2,934 square feet and $303,164. The 38018 ZIP code in Cordova South netted 261 sales averaging 2,062 square feet and $147,300. And the 38016 ZIP code in Cordova North recorded 251 sales averaging 1,012 square feet and $133,634.
Continuing the steady, months-long decline in bank, or foreclosure, sales, there were a total of 583 bank sales in the quarter, as opposed to 825 in the same period last year. The average sale of a bank-owned property in the second quarter was $72,016, down from $76,036.
There were 3,605 nonbank sales recorded in Shelby County during the second quarter, up from 3,400 over the same period a year ago. The average sales price of a nonbank home in the second quarter was $164,223, up from $157,127 a year ago.
There were 4,001 existing homes sold in the second quarter of 2014, down slightly from 3,994 over the same period last year. The average sales price for an existing home in the second quarter was $145,332, up 8 percent from $134,398 in the second quarter of 2013.
Shelby County recorded 187 new home sales in the second quarter, down 19 percent from 231 new homes sold in the second quarter of 2013. The average sales price for a new home in the second quarter was $260,931, up slightly from $260,490 in the second quarter of 2013.
Year to date through June, 7,460 homes have been sold, down 2 percent from 7,608 homes sold through the first six months of 2013. The average sales price of a home through June was $143,713, up 9 percent from $132,149 over the same period last year. The sales volume through the first half of the year was $1.072 billion, up from $1.005 billion over the same period last year.
The decrease in bank sales and a dwindling supply of inventory are leading to price increases.
The rise in home prices could attract sellers who may have been sitting on the sideline waiting for conditions to improve.
“The good news is prices have increased 9 percent in that time span,” Glosson said. “People may not have been able to sell because they lost equity. Now, we have a lot of people who may be able to get back into the market again.”
Looking ahead, Glosson thinks Shelby County home sales will end 2014 on a high note.
“I think we’re poised for a good third and fourth quarter,” he said. “The ingredients are there.”
Chandler Reports is a division of The Daily News Publishing Co. Inc.