The Memphis-area housing market was a mixed bag in April as the lack of inventory caused the number of home sales to drop for the first time in eight months but also kept average sales prices on the rise.

A low inventory was most likely the culprit for the number of homes sales dropping year over year for the first time in eight months. 

(Daily News File/Andrew J. Breig)

The average home sales price in April was $158,037, up 4 percent from $151,458 a year ago, according to real estate information company Chandler Reports, chandlerreports.com. However, the number of units sold dropped 7 percent, with 1,470 sales recorded in April compared with 1,574 last year. And the volume of home sales dipped to $232 million, down 3 percent from $238 million a year ago.

“There is no doubt that this is due to the lack of inventory, but not in all areas though,” said Crye-Leike Real Estate Services sales leader and vice president Chet Whitsitt. “I’ve had some sellers shoot themselves in the foot because they think they can get whatever they want.”

Whitsitt said that while areas like Arlington and Eads remain red-hot, he’s seeing similar success in areas such as Bartlett and Cordova.

“I had a house in Cordova that was only listed for $105,000, and the first day I had it on the market I had 16 showings and sold it that day,” he said. “The one in Bartlett only had five showings, but we sold it so quick I had to cancel the rest.”

Eads’ 38028 ZIP code recorded the highest average price, at $371,843.

Existing-home sales in April dropped year over year, with 1,408 recorded last month compared with 1,512 in April 2016. The average price of existing homes, meanwhile, reached $151,291 in April, up 4 percent from $145,350 a year ago.

Sales of new homes were identical for the month, with 62 sales recorded in April the last two years. The average price of a new home, however, rose 4 percent to $311,224 from $300,414 a year ago.

Arlington’s 38002 ZIP code recorded the most new-home sales for the month, with 13 sales averaging $300,305.

Investor purchases accounted for 24 percent of all home sales in Shelby County in April and had an average sales price of $73,223. Of those investor purchases, 43 percent were made by out-of-town buyers.

Sarah Layson, with Keller Williams Realty, started her real estate team with her husband in Nashville three years ago, and figured now would be a good time expand their offices back into her hometown.

“Memphis isn’t as saturated as Nashville, but I see a lot of room for growth in the market,” Layson said.

She said her team of six agents in Nashville is on track to sell 100 homes in Nashville, while her three-person team in Memphis is on pace to sell 25 to 30 houses, despite setting up shop in February.

All things considered, Layson said this great time to get involved in her hometown’s growing real estate market.

Building permits

Developers pulled 210 new-home permits averaging $307,998 through the first three months, down 2 percent from 2016.

Regency Home Builders was the top builder in the first quarter, with 53 new-home sales recorded averaging $382,532 and 38 new-home permits filed.

Collierville's 38017 ZIP code had the most new home permits in the first quarter, with 49 averaging $382,532, while Arlington’s 38002 ZIP code recorded the most new-home sales for the month, with 13 averaging $300,305.

Foreclosure activity

Shelby County residential foreclosures continued to drop in April, according to Chandler Reports, with 113 recorded for the month – a 35 percent decrease from last February.

Southeast Shelby County’s 38125 ZIP code had the highest foreclosure inventory value of $14 million across 95 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure inventory through April with 157 properties valued at $6 million.

Among lenders, Fannie Mae had the highest foreclosure inventory, with 157 homes valued at $16 million.

Bank sales – or foreclosure sales – represented 8 percent of all Shelby County homes sold in April. The 137 bank sales recorded last month marked a 17 percent decrease year over year. The volume of bank sales dropped 1 percent to $13 million.

Meanwhile, non-bank sales increased 25 percent to 1,475 last month, with the volume of non-bank sales also increasing 27 percent to $231 million.

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