Memphis Housing Market Continues Growth in January

By Patrick Lantrip

The Memphis and Shelby County housing market got off to a good start in 2017 with a 28 percent increase in total home sales for the area and the largest number of new-home permits since the housing market crash. 

The average home sales price in January was $143,062, a 3.4 percent increase from January 2016, according to real estate information company Chandler Reports, 

“Our January was extremely busy,” said Judy McLellan, a Realtor with Crye-Leike Real Estate Services. “People feel very confident that this would be a great time to place their house on the market and start looking for another house.”

Total home sales volume in January reached $144.9 million, up 26.8 percent from $114.3 million a year ago, according to the Chandler Reports data. 

Germantown East’s 38139 ZIP code recorded the highest average price, at $600,207. 

Existing home sales rose 8 percent year-over-year, with 1,086 recorded last month compared with 914 in January 2016. Their average price, meanwhile, reached $133,457 in January, up 6.7 percent from $125,036 a year ago. 

Sales of new homes rose 22 percent for the month, with 66 sales recorded compared with 54 in January 2016. The average price of a new home grew 10 percent to $301,106 from $272,565 a year ago. 

Cordova-South’s 38018 ZIP code recorded the most new-home sales for January, with 14 sales averaging $213,388.

“From almost all aspects, I think that the residential real estate market is strong, said Lee McWaters, the second-generation owner of McWaters & Associates Realtors. “As far as January numbers go, they’re up across the board.” 

Building permits

Developers pulled 961 new-home permits throughout 2016, up 7 percent from 898 in 2015, according to full-year figures recently released by Chandler Reports.

Regency Home Builders was the top builder last year, with 224 new-home sales recorded averaging $261,066 and 243 permits filed. 

This marks the highest number of home starts Shelby County has seen since the housing market crashed in 2007. 

Arlington/Lakeland’s 38002 ZIP had the highest concentration of new-home permits in 2016, with 198 filed for the year. Collierville’s 38017 and southeast Shelby County’s 38125 tied for second place, with 188 each.

Foreclosure activity

Shelby County residential foreclosures continued to decline in January, according to Chandler Reports, with 164 recorded for the month – a 7 percent decrease from last January.

Of the 164 recorded in Shelby County last month, the average foreclosure amount was $76,991 and the average tax appraisal value was $109,014. 

The city of Bartlett recorded 10 foreclosures for the month averaging $172,629, which is up 67 percent. 

Cordova-North’s 38016 ZIP code had the highest foreclosure inventory value of $14 million across 102 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure inventory through January, with 160 properties valued at $6 million.

Among lenders, Fannie Mae had the highest foreclosure inventory, with 164 homes valued at $17 million.

Bank sales – or foreclosure sales – represented 8 percent of all Shelby County homes sold in January. The 92 bank sales recorded last month marked a 36 percent decrease year over year. The volume of bank sales dropped 29 percent to $7.8 million.

Meanwhile, non-bank sales increased 29 percent to 1,060 last month, with the volume of non-bank sales increasing 33 percent to $157 million.

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