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VOL. 131 | NO. 146 | Friday, July 22, 2016

Q2 Data Show Strong Memphis Economy

By Andy Meek

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From lending activity to bank data to anecdotal evidence from businesses in the area, the Memphis economy seems to be moving into the summer months from a position of strength.

That’s based on a comprehensive look at second quarter metrics and data – everything from recaps of big real estate deals to home sale numbers and the stock prices of Memphis-based companies – included in The Daily News Quarterly Review.

That packaged snapshot of the local economy, which also features the latest Memphis Economic Indicator survey results, will be published next week.

The Memphis Economic Indicator, powered by Dixon Hughes Goodman, is a quarterly survey that polls members of the local business community on aspects of their business like whether they forecast expenses and revenues to rise and if they see the overall economic position of both their company and Memphis as a whole improving or not.

What next week’s collection of data will show, among other things, is a robust economy with plenty of strong inputs and drivers of growth.

The package also will present data like Memphis International Airport passenger traffic and local employment data.

“Our success is really a function of our clients’ growth and profitability,” said Dixon Hughes Goodman’s Memphis managing partner Anthony Clark. “When they expand into additional markets, acquire other companies, or hire additional employees, we typically see an uptick in our business.

“Fortunately, most of our clients saw good results in the second quarter, especially those in the consumer retail and healthcare sectors.”

On a similar note, Community Mortgage Corp. executive vice president and chief financial officer Mike Wells said the second quarter reflected a “favorable lending environment” powered by factors like strong job creation and continued record-low interest rates.

As part of its second quarter earnings released this week, Nashville-based Pinnacle Financial Partners also said net loans in the Memphis area are up more than 40 percent since its acquisition of Magna Bank in Memphis closed in September.

Recent Shelby County-focused real estate data paint a similar picture.

Total purchase mortgage volume in Shelby County, for example, hit $214 million in June. That’s 8 percent growth over June 2015’s total of a little more than $198 million, according to real estate information company Chandler Reports, www.chandlerreports.com.

The number of home sales in June was 1,688, down 5 percent compared to 1,784 sales recorded in June 2015, according to Chandler. But the average home sales price jumped 9 percent from last June to $179,727.

The median sales price for a home was $148,000, up 15 percent compared to last year, and total home sales revenue for the month was $303 million, compared to $292 million last June.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 23 23 1,365
MORTGAGES 21 21 1,068
FORECLOSURE NOTICES 0 0 190
BUILDING PERMITS 117 117 3,173
BANKRUPTCIES 42 42 795
BUSINESS LICENSES 2 2 331
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0