Memphis and Shelby County’s new home sales prices continue to climb. The average sales price of $319,357 in the third quarter marked the highest on record, amounting to a 6 percent price increase from the average new home sales price of $300,635 in Q3 2015.

The new-housing market saw a spike in the number of new home permits during Q3 2016 with 306 permits pulled, amounting to a 29 percent increase over the 237 new home permits pulled during Q3 2015 – a sign that builder confidence is returning to the market.

With the increase in permits, the unsold inventory of new homes in Shelby County rose 19 percent to 966 as of Sept. 30, compared with 814 houses in inventory as of Sept. 30, 2015. The current unsold inventory accounts for 13.5 months’ supply of new housing.

Through the first 10 months of this year, East Memphis’ 38117 ZIP code has recorded one of the highest average new home sales price: $748,550 across six sales. As vacant lots become scarcer, builders are tearing down existing homes across the area and building new, customized homes.

4732 Shady Grove Road (Chandler Reports)

There have been several of these types of new home sales recorded in the Shady Grove subdivision this year. The 1950s home previously situated at 4732 Shady Grove Road was demolished in 2013 and replaced by a 6,800-square-foot house. The new home sold Sept. 9 for almost $1.4 million.

Click here to review all home sales trends for Shady Grove over the past three years with current year-to-date figures.

Several subdivisions with notable new home sales prices include Shepherds Creek in Collierville, with an average sales price of $858,050; The Stables in Collierville, with an average price of $589,274; and The Enclave in Germantown, with an average price of $585,717.

Wendy Greenlaw, business development manager for real estate information company Chandler Reports, can be reached at wendy@chandlerreports.com.