VOL. 132 | NO. 224 | Friday, November 10, 2017
Buyers Keep Coming
By Patrick Lantrip
October was another solid month for the local housing industry. The average home sales price rose to $168,272, a 13 percent increase from October a year ago, according to real estate information company Chandler Reports, chandlerreports.com.
The volume of home sales in October reached $248 million, up 11 percent from $224 million a year ago, according to the Chandler Reports data.
Germantown’s 38139 ZIP code recorded the highest average sales price at $481,922.
While prices and volume were higher, total home sales dropped slightly by 2 percent in October from a year ago, with 1,474 sales recorded for the month compared with 1,501 last year.
Home sales dipped slightly in October, but volume, prices and prospect activity remain strong. (Shutterstock)
Through October, total home sales revenue is up 14 percent, the number of home sales recorded is up 9 percent, and average home sales prices are up 5 percent compared to the same period in 2016.
Lauren Harkins Wiuff with Marx-Bensdorf Realtors said these figures compare favorably with conditions she is experiencing.
“Our listings are selling, and I have a bunch of buyers who I’m going out with almost every day, so things are looking good,” she said. “Usually around this time, it starts slowing down, and I don’t see that happening.”
Existing-home sales in October dropped 2 percent with 1,412 recorded last month compared with 1,441 in October 2016. The average price of existing homes, meanwhile, reached $158,833 in October, up 10 percent from $143,783 a year ago.
Sales of new homes rose 3 percent for the month, with 62 sales recorded compared with 60 in October 2016. The average price of a new home rose 35 percent to $383,239, up from $283,619.
“New-home sales are up for the month of October and year to date, so that’s starting to come back,” Wiuff said. “I’ve actually shown quite a few new builds, which is pretty exciting, because I feel like I haven’t done that in a few years.”
Unincorporated Shelby County recorded the most new-home sales for October with 29 sales averaging $393,363.
Lee McWaters, owner of McWaters & Associates Realtors, also noted an increase in new-home sales activity.
“In fall you’re gearing down, so you usually see declining sales in the winter; now we’re seeing growth in the new-home market,” he said. “They are selling them faster than they can build them, now that they are starting to develop some land.”
Which, he said, has a ripple effect on the whole market.
“If you have a new home to go to, that will open up the inventory,” he said. “That’s been a problem over the last few years, because if you don’t have a place to go, you’re not going to put your house on the market.”
Developers pulled 56 new-home permits averaging $333,442 in September, down 52 percent from 2016.
Regency Home Builders was the top builder in September, with 12 new-home sales recorded averaging $365,794 and 11 new-home permits filed averaging $343,811.
Collierville’s 38017 ZIP code saw the most new-home permits filed in September with nine permits averaging $472,571.
Shelby County residential foreclosures continued to decline in October, according to Chandler Reports, with 108 recorded for the month – a 16 percent decrease from last October.
Of those 108, the average foreclosure amount was $85,855 and the average tax appraisal value for was $121,102.
Cordova’s 38016 ZIP code had the highest foreclosure inventory value of $14 million across 93 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure inventory through October with 151 valued at $6 million.
Among lenders, Fannie Mae had the highest foreclosure inventory, with 143 homes valued at $16 million.
Bank sales – or foreclosure sales – represented 6 percent of all Shelby County homes sold in October. The 85 bank sales recorded last month marked a 49 percent decrease from October 2016. The volume of bank sales dropped 34 percent to 9.8 million.
Meanwhile, non-bank sales increased 4 percent to 1,389 last month, with the volume of non-bank sales also increasing 14 percent to $238 million.
Chandler Reports is a division of The Daily News Publishing Co.