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VOL. 132 | NO. 157 | Wednesday, August 9, 2017

Home Sales Up, Price Slips in July

By Patrick Lantrip

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As the housing market begins to head into a slower time of year with school restarting, home sales still continue to outpace last year’s figures despite a slight dip in average sales price.

Collierville’s 38017 ZIP code saw 146 home sales in July, the most of any ZIP code in Shelby County. (Shutterstock)

The number of units sold in Shelby County was up 14 percent in July, with 1,808 sales recorded compared with 1,584 last July, according to real estate information company Chandler Reports, chandlerreports.com.

However, the average home sales price in July dipped by 4 percent from a year ago, due in part to an increase of homes sold for less than $50,000.

The volume of home sales in July still reached $313 million, up 10 percent from $284 million a year ago.

For the year through July, recorded home sales are up 9 percent, average home sales prices are up 3 percent, and total home sales volume is up 13 percent from the same period in 2016, according to Chandler Reports.

Vinh Le with First National Realty said he feels the 2017 figures will continue to outperform the previous year’s even as the market begins to gear down for fall and winter.

“The clientele and leads are slowing down a little bit, because most people are already settled in for the year,” Le said.

Eads’ 38028 ZIP code recorded the highest average price, at $573,526, while Collierville’s 38017 ZIP code recorded the most with 146 sales.

When Cordova North’s 38016 and Cordova South’s 38018 ZIP codes are combined, they account for 221 homes sales, with Cordova North averaging $173,826 and Cordova South averaging $169,524.

“Cordova is still proving to be a hot seller, especially for first-time homebuyers,” Le said.

Building permits

In June, developers pulled 49 new-home permits, which is down 61 percent from June 2016.

Regency Homebuilders was the top builder in June both in terms of new-home starts – 12 averaging $328,942 – and new-home sales, 15 averaging $267,043.

Keith Grant, co-owner of Grant & Co., said that while the numbers may never return to peak pre-recession levels, it doesn’t mean the market isn’t healthy.

“We don’t have as many builders or developers in the market anymore, but for those who are building, it’s a healthy market,” Grant said. “Our biggest challenge right now is getting people to build the homes fast enough.”

Grant added that now is a great time to buy a house because home values in Shelby County are rising at the highest pace they have in more than a decade.

“So now is a better time to buy than any other time, at least in recent history – and we still have a ways to go,” Grant said. “With low inventories, you’re going to continue to see an escalation in values.”

Collierville’s 38017 ZIP code saw the most new-home permits in June with 17 averaging $365,666.

Sales of new homes rose 10 percent for the month to 88, with an average sales price of $363,584. That compared to 80 recorded last July averaging $329,354.

Collierville’s 38107 ZIP code recorded the most new-home sales for July with 22 sales averaging $476,186.

Meanwhile, existing-home sales in July rose 14 percent, with 1,720 recorded last month compared with 1,504 in July 2016. The average sales price of existing homes was $163,208 in July, down 5 percent from a year ago.

Foreclosure activity

Shelby County residential foreclosures continued to drop in July, according to Chandler Reports, with 119 recorded for the month – a 17 percent decrease from last July.

Of those 119, the average foreclosure amount was $86,849 and the average tax appraisal value was $114,990.

Southeast Shelby County’s 38125 ZIP code had the highest foreclosure inventory value of $15 million across 93 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure through July with 156 valued at $6 million.

Among lenders, Fannie Mae had the highest foreclosure inventory, with 150 homes valued at $16 million.

Bank sales – or foreclosure sales – represented 7 percent of all Shelby County homes sold in July. The 121 bank sales marked a 6 percent decrease from July 2016. The volume of bank sales rose 8 percent to $11 million.

Meanwhile, non-bank sales increased 16 percent to 1,687 last month, with the volume of non-bank sales also increasing 10 percent to $301.6 million.

Chandler Reports is a division of The Daily News Publishing Co.

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PROPERTY SALES 63 233 7,982
MORTGAGES 87 288 9,487
BUILDING PERMITS 209 452 17,059
BANKRUPTCIES 50 155 5,561

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