VOL. 131 | NO. 244 | Thursday, December 08, 2016
Shelby County Home Sales Rise 30 Percent in November
By Patrick Lantrip
November was a strong month for home sales in Shelby County. November sales increased 30 percent, with 1,424 sales compared to 1,093 a year ago, according to Market Trend data compiled by real estate information company Chandler Reports.
In addition to the total number of home sales, the average sales price was up 12 percent to $169,339 and total home sales volume in the area rose 46 percent from last year to $241 million.
The median sales price was also up 17 percent from last November to $126,600.
Crye-Leike Real Estate Services sales leader and vice president Chet Whitsitt said that sales sometimes tend to slow down this time of the year, but this year, the market is still going strong.
November was a particularly strong month as the number of home sales recorded increased 30 percent from last year. The median sales price for homes in the county also increased by 17 percent.
“I think it’s going to carry on to January,” Whitsitt said.
The strong market is a combination of low interest rates and shortage of inventory, according to Whitsitt, who also said that TV-inspired home repairs sometimes add to the mental value of the house, and cause homeowners to remain in one location longer.
“When you spend a little money, it doesn’t necessarily totally update the house, but mentally it does for the owners,” Whitsitt said. “That makes them think, our house is nice, and we don’t need to move.”
Lee McWaters, the second-generation owner of McWaters and Associates Realtors, also feels that the strong November will carry over.
“As far as contracts written, it has been excellent,” McWaters said.
McWaters said he and his wife Shannan alone “probably have about $3 million in the pipeline, ready to close in the next 45 days.”
Typically, it takes 30 to 60 days to close after a contract is written.
“I think 2017 is even going to be better,” McWaters said. “I think we’ve got a great setup for interest rates starting to rise, but not high. Inventory is low, so that the prices are going to go up and buyers are going to grab what they can before it goes off the shelf.”
McWaters also said he expects an increase in new construction, which has been the missing piece in today’s market that is keeping inventory low.
“What I’m really hoping for in 2017 is the reemergence of new construction,” McWaters said. “That is one part of our market that has not come back to the numbers of the pre-recession time.”
Some other statistics of note from Chandler Reports on home sales in November:
• Of the 33 ZIP codes in Shelby County, 26 saw an increase in sales compared to November 2015.
• The greatest percentage increase in sales over that period was in Millington, where homes sales rose 86 percent, followed by Lakeland, which saw a 81 percent increase, then Bartlett and Collierville, at 52 percent and 46 percent, respectively. Home sales in unincorporated areas of Shelby County were up an impressive 54 percent as well.
• Year-to-date, homes sales are up 9 percent in the county compared to the first 11 months of 2015; average sales prices have risen 3 percent year-over-year through November.
Chandler Reports is a division of The Daily News Publishing Co.