VOL. 132 | NO. 182 | Wednesday, September 13, 2017
Home Sales, Prices Rise Sharply in August
By Patrick Lantrip
As the summer months wind down, the housing market in Memphis and Shelby Country continued the upward swing that it has been on all year.
In August, the average home sales price was $172,152, a 6 percent increase from August a year ago, according to real estate information company Chandler Reports, chandlerreports.com.
Meanwhile, the number of units sold was up an impressive 14 percent in August, with 1,957 sales recorded for the month compared with 1,710 last year.
Eads’ 38028 ZIP code recorded the highest average price for the month, at $688,750.
County home sales rose 14 percent in August and the average price was up 6 percent, Chandler Reports data show. (Shutterstock)
The volume of home sales in August reached $337 million, up 21 percent from $279 million a year ago, according to Chandler Reports data.
Additionally, the number of home sales recorded are up 10 percent through the first eight months of this year, average home sales prices are up 4 percent, and total home sales revenue is up 14 percent from the same period in 2016.
As the fall and winter approach, Lauren Harkins Wiuff with Marx-Bensdorf Realtors said homes sales have the potential to remain steady during a typically slower time of year because a lack of inventory is keeping the search alive for many clients.
“Since the inventory is still low, I do have a lot of buyers out there who are waiting for that perfect house to jump on the market,” she said.
She said rainy conditions that were thanks in part to the remnants of Hurricane Harvey in late August and the back-to-school rush kept some perspective buyers on the sideline, but anticipates there may be a spike in home sales before the end of the year.
“We usually have a pretty good spike in home sales in the fall, so I’m excited to see if that will continue this year,” she said. “Usually they want to get into their homes before November.”
Existing home sales in August rose, with 1,887 recorded last month compared with 1,636 in August 2016. The average sales price of existing homes, meanwhile, reached $165,348 in August, up 6 percent from $156,437 a year ago.
Sales of new homes, however, dropped 5 percent for the month, with 70 sales recorded compared to 74 in August 2016. Conversely, the average sales price of a new home rose 13 percent to $355,559 from $313,619 a year ago.
Arlington’s 38002 and Collierville’s 38017 ZIP codes recorded the most new-home sales for August – each had 18 sales averaging $315,311 and $328,225, respectively.
Developers pulled 63 new-home permits in July, a sharp 53 percent decrease from 134 in July 2016.
Regency Home Builders was the top builder in July. It recorded 15 new-home sales averaging $329,233 and 18 new-home permits filed.
Arlington/Lakeland’s 38002 ZIP code claimed the most new-home permits in July with 18 total averaging $233,748.
Crye-Leike Real Estate Services sales leader and vice president Chet Whitsitt said the decrease in new-home starts is most likely the result of the shortage of lots that are ready to build on.
He said the cost of developing lots has risen drastically post-housing crisis, and unless something changes, new-home starts will continue to drop as the number of lots that were developed before the housing crisis dwindles.
“Even if they started developing a subdivision today, it would be more than a year before they even started building on it,” he said.
Shelby County residential foreclosures continued to drop in August, according to Chandler Reports, with 124 recorded for the month – a 19 percent decrease from 154 last August.
Of those 124, the average foreclosure amount was $73,178 and the average tax appraisal value was $106,697.
Southeast Shelby County’s 38125 ZIP code had the highest foreclosure inventory value of $14 million across 85 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure inventory through August with 154 valued at $6 million.
Among lenders, Fannie Mae had the highest foreclosure inventory, with 141 homes valued at $116 million.
Bank, or foreclosure sales, represented 8 percent of all Shelby County homes sold in August. The 147 bank sales recorded last month marked a 7 percent increase, the first monthly year-over-year increase this year. The volume of bank sales rose 26 percent to $13.8 million.
Meanwhile, non-bank sales also increased 15 percent to 1,810 last month, with the volume of non-bank sales increasing 20 percent to $323 million.
Chandler Reports is a division of The Daily News Publishing Co.