VOL. 132 | NO. 118 | Wednesday, June 14, 2017
Shelby County Mortgage Market Sees 14 Percent Gain in May
By Andy Meek
Sam Goff, vice president of Independent Bank’s mortgage division, got two new contracts in place for homebuyers over the weekend, which gave him an upbeat start to the week.
“We’ve gotten a lot of phone calls here in the last week to 10 days,” he said. “A lot of pre-qualification requests.”
Shelby County’s mortgage market continues to show healthy gains in volume at the halfway point of the second quarter, according to newly released figures from real estate information company Chandler Reports, www.chandlerreports.com.
Purchase mortgage volume climbed 14 percent in Shelby County during the month of May compared to May 2016. Purchase volume grew from $172.6 million in May 2016 to $196.4 million last month, according to Chandler Reports data.
That improvement was a reversal that hit the market in April, when purchase volume slipped 2.4 percent, according to the Chandler figures.
Year to date through the end of May, mortgage purchase volume hit $732.4 million. That’s up from $655.2 million during May 2016, a 12 percent pop.
“It’s a seller’s market, because of a lack of product,” said Goff, who added he’s also seen buyers snatching up homes here to turn them into Airbnb rentals. “Houses come on the market in good condition and in good communities, and they’re receiving a lot of attention. So it’s not unusual for homes to go for more than their asking price.
“In some of the neighborhoods around Crosstown Concourse, homes are moving pretty quickly, where a couple of years ago they probably wouldn’t have,” Goff said. “It’s across all socioeconomic levels. People are buying the homes in Collierville and Germantown as they come up. They’re buying the cottages in Midtown, and the larger homes in Midtown, too. It’s just really heated up.”
David Umsted, vice president of Triumph Mortgage, said his firm tends to do most of its volume for the year over the next two to three months. The summer months are historically busy, and important for lenders like him.
And he said Triumph is up locally about 30 percent at the moment.
“The market’s been good,” Umsted said. “Rates are really good. Rates have stayed low. Inventory’s stayed low. So what we’re seeing is, as soon as a house hits the market in certain areas, you’re seeing multiple offers.
“We have pretty lofty goals for this year, and we’re on pace to meet all those goals right now. The summertime is a great time in the mortgage business.”
The market also saw improvement in May in terms of the number of mortgages themselves, as well as the size of those mortgages.
From May 2016 to May 2017, the Chandler numbers show 12 percent more mortgages – from 958 to 1,075. The average mortgage amount also grew from $180,168 to $182,701 during that same period.
The same trends have held true year to date, not just for May, with the number and average dollar amount of mortgages made year-to-date increasing compared to the same period in 2016.
Lenders had made 4,191 mortgages year-to-date through the end of May. That’s up from 3,828 mortgages one year earlier. Likewise, the average mortgage amount year-to-date stood at $174,777 in May, up from $171,185 in May 2016.